Trez Capital Senior Mortgage Investment Corporation

Trez Capital Senior Mortgage Investment Corporation

July 20, 2017 13:21 ET

Trez Capital Senior Mortgage Investment Corporation Announces Special Distribution

TORONTO, ONTARIO--(Marketwired - July 20, 2017) - Trez Capital Senior Mortgage Investment Corporation (TSX:TZS) (the "Company") announced today that its board of directors has declared a special distribution of $1.34 per Class A share of the Company (the "Special Distribution"). The Special Distribution, which constitutes a return of capital pursuant to the winding-up of the Company's business as approved by Shareholders on June 16, 2016, will be paid on August 28, 2017 to holders of Class A shares of record at the close of business on August 15, 2017. The Special Distribution is in addition to the Company's monthly distributions (also constituted as returns of capital), which the Company intends to continue until further notice. As of July 19, 2017, there were 7,437,067 Class A shares outstanding.

The Special Distribution payment is not subject to any condition, will be made in cash and will be subject to the "Due Bill" trading requirements mandated by the TSX Exchange.

Because the amount of the Special Distribution represents a distribution of greater than 25% of the market value of the Company on the declaration date, the TSX Exchange has required that the Class A shares will trade on a "Due Bill" basis during the period (the "Due Bill Period") from and including August 11, 2017 until the close of trading on August 28, 2017 (the "Payment Date").

This means that buyers of Class A shares during the Due Bill Period will receive the Special Distribution payment, provided they continue to be holders of the applicable common shares on the Payment Date.

The Class A shares will commence trading on an ex-distribution basis (i.e. without an attached "Due Bill" entitlement to the Special Distribution) commencing the opening of trading on August 29, 2017 (i.e. the next trading day after the Payment Date). The Due Bill redemption date will be August 31, 2017. As a result of the Class A shares trading on a Due Bill basis during the Due Bill Period, those entitled to be paid the Special Distribution owing on the Due Bills should expect to receive that payment by the Due Bill redemption date of August 31, 2017.

About the Company

The Company holds a diversified portfolio of mortgages in Canada. Trez Capital Fund Management Limited Partnership is the manager of and portfolio advisor to the Company. On June 16, 2016 the Shareholders of the Company approved the orderly wind-up of the Company. Under the orderly wind-up plan the Company will distribute the net proceeds through special distributions, the repurchase of shares pursuant to the normal course issuer bid, or otherwise. To date, 140,921 of Class A Shares have been purchased for cancellation under the normal course issuer bid commenced.

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