TORONTO, July 20, 2016 /CNW/ – Trez Capital Senior Mortgage Investment Corporation (TSX:TZS) (the “Company”) announced today that its board of directors has declared a distribution of $0.0485 per Class A share of the Company. The 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 15, 2016 to holders of Class A shares of record on July 31, 2016. As of July 19, 2016, there were 7,577,988 Class A shares outstanding. The Company intends to continue with similar monthly distributions until further notice.
The Company also offers a Dividend Reinvestment Plan (the “Plan”) to eligible holders of Class A Shares, that provides eligible holders of Class A shares of the Company with a convenient means to purchase additional Class A Shares by reinvesting their cash dividends at a potential discount to the current market price.
Shares for the reinvestment of dividends will be acquired in the open market at prevailing market rates or, if lower than the current market price, issued from treasury at the greater of book value per share and 95 percent of the average market price. “Average market price” is defined in the Plan to be the volume weighted average trading price of Class A Shares on the Toronto Stock Exchange during the 10 trading days ending on the third business day immediately prior to the dividend payment date on which at least a board lot of Class A Shares is traded. Class A Shares acquired under the Plan will be automatically enrolled in the Plan. Beneficial shareholders who hold their Class A Shares through a broker, financial institution or other nominee must enroll for dividend reinvestment through their nominee holder.
Effective August 30, 2016 the Company’s shareholder distribution reinvestment plan (the “DRIP”) will be terminated. As a result, the DRIP will not be available in connection with the distribution that is payable on September 15, 2016, or any subsequent monthly distributions. Shareholders, including those who had previously participated in the DRIP, will continue to be entitled to monthly cash distributions as and when declared by the board of directors of the Company.
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.
SOURCE Trez Capital Senior Mortgage Investment Corporation
