TORONTO, March 23, 2018: Trez Capital Mortgage Investment Corporation (TSX:TZZ) (the “Company”) announced today that its board of directors has declared a special distribution of $1.52 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 April 20, 2018 to holders of Class A shares of record at the close of business on April 9, 2018. The board of directors has also determined to suspend regular monthly distributions commencing with the April 2018 distribution (which would have ordinarily be paid on May 15, 2018), until further notice. The regular monthly distribution, which also constitutes a return of capital, of $0.0583 per Class A Share to holders of record on March 29, 2018, will be paid by the Company on April 16, 2018, as previously announced. The decision to suspend regular monthly distributions was premised on a review of the last remaining mortgages and cash requirements. The Board anticipates making further special distributions as the mortgages in the portfolio mature or are sold, subject to reasonable expected operating expenditures. As the wind-up of the Company progresses, it is expected that there will be some variance in the timing and quantum of special distributions. As of March 22, 2018, there were 11,843,491 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 Toronto Stock Exchange (the “TSX”).
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 has required that the Class A shares will trade on a "Due Bill" basis during the period (the "Due Bill Period") from and including April 6, 2018 until the close of trading on April 20, 2018 (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 April 23, 2018 (i.e. the next trading day after the Payment Date). The Due Bill redemption date will be April 24, 2018. 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 April 24, 2018.
About the Company
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.
For further information, please contact:
Chief Executive Officer & Chief Financial Officer