Timbercreek Financial Corp.
TSX : TF

January 29, 2018 16:23 ET

Timbercreek Financial Announces $40 Million Public Offering of Common Shares and Intention to Exercise Portion of Accordion Feature of its Credit Agreement

TORONTO, ONTARIO--(Marketwired - Jan. 29, 2018) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Timbercreek Financial Corp. (TSX:TF) ("Timbercreek Financial" or the "Company") today announced that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. and TD Securities Inc. pursuant to which the underwriters will purchase 4,302,000 common shares of the Company at a price of $9.30 per common share (the "Issue Price") for gross proceeds of $40,008,600. The Company has also granted to the underwriters an over-allotment option to purchase up to an additional 645,300 common shares at the Issue Price, exercisable in whole or in part at any time for a period of up to 30 days following closing of the offering, to cover over-allotments. If the over-allotment option is exercised in full, the gross proceeds of the offering will total $46,009,890.

The Company intends to use the net proceeds of the offering for general corporate purposes, particularly funding the purchase of new investments in accordance with the strategies, investment objectives and investment guidelines of the Company.

The Company is also pleased to announce that it has provided notice under its credit agreement that it intends to exercise a portion of the $100 million accordion feature (the Accordion Feature). The exercise of the Accordion Feature, which is subject to credit approval by members of the lending syndicate, will increase the total revolving commitment of the lenders by $40,000,000, bringing the facility limit to $440,000,000. General terms of the credit facility will remain unchanged. The Company expects closing of the Accordion Feature to be completed on or about February 14, 2018.

"Timbercreek continues to see very strong demand for short-term commercial mortgage solutions and is reviewing a robust pipeline of high-quality transactions that meet its investment objectives," said Cameron Goodnough, President & CEO of Timbercreek Financial. "These additional funds will help us address this market demand and continue to generate strong risk-adjusted returns for our shareholders."

The offering of common shares is expected to close on or about February 7, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.

The Company intends to file a prospectus supplement to its December 11, 2017 base shelf prospectus in respect of this issue by no later than January 31, 2018 with the securities regulatory authorities in all provinces and territories of Canada. The securities being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly will not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except where an exemption from registration is available. This news release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.

About Timbercreek Financial

Timbercreek Financial is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate investors. Our sophisticated, service-oriented approach allows us to meet the needs of borrowers, including faster execution and more flexible terms that are not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, we are able to meet these needs while targeting strong risk-adjusted returns for investors.

Disclaimers

This news release contains forward-looking statements about Timbercreek Financial. Forward-looking statements are typically identified by words such as "expect", "anticipate", "believe", "foresee", "could", "intend", "plan", "seek", "strive", "will", "may", "potential" and "should" and similar expressions concerning matters that are not historical facts. By their nature, forward looking statements reflect Timbercreek Asset Management Inc.'s and the Company's current views, beliefs, assumptions and intentions, and are subject to certain risks and uncertainties, known and unknown, including, without limitation, risks disclosed in the Company's public filings. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward-looking statements. The Company does not intend to nor assumes any obligation to update these forward-looking statements whether as a result of new information, plans, events or otherwise, unless required by law.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

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