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TORONTO, July 9, 2020 /CNW/ - Tricon Residential (TSX:
TCN) ("Tricon" or the "Company"), a rental housing company catering
to the middle-market demographic throughout the United States and Canada, announced today that its single-family
rental joint venture (the "JV", in which Tricon holds a one-third
interest) has priced its 2020-SFR1
securitization transaction.
Tricon's largest securitization transaction to date, comprising
six offered classes of fixed-rate certificates with a total face
amount of US$553 million, was priced
at a record-low (for a single-family rental securitization)
weighted average coupon of approximately 2.34% with a term to
maturity of six years. The anticipated transaction proceeds
represent 72.5% of the value of the securitized portfolio of 3,540
single-family rental properties owned by the JV. The transaction is
expected to close on or about July 21,
2020.
The transaction proceeds will be used to refinance existing JV
debt and are expected to result in approximately $55 to $60 million
of net proceeds to the JV to be used primarily for future
acquisitions of single-family rental homes. The JV's acquisition
program is expected to resume in Q3, subject to market conditions
and following a three month pause due to the COVID-19 pandemic.
"I would like to congratulate our team and thank our capital
market partners for achieving incredibly attractive terms on
Tricon's largest securitization financing to date," said
Gary Berman, President and CEO of
Tricon. "The transaction was placed with 40 investors, including 21
new investors to Tricon, and was approximately 5 times
over-subscribed with significant interest across all tranches. We
see the strong demand and record-low pricing for Tricon as
validation of our middle market strategy, our strong operating
performance, and the resilience of our single-family rental
business in today's challenging economic environment."
The offering of certificates is being made by Deutsche Bank
Securities Inc. as sole structuring agent, joint bookrunner, and
co-lead manager, BofA Securities, Inc. as joint bookrunner and
co-lead manager and Morgan Stanley & Co. LLC as joint
bookrunner and co-lead manager. The various classes of offered
certificates have been rated on a preliminary basis by Moody's
Investor Services and Kroll Bond Rating Agency.
About Tricon
Founded in 1988, Tricon is a rental housing company catering to
the middle-market demographic throughout the United States and Canada. We own and manage over 30,000
single-family rental homes and multi-family rental units through an
integrated, technology-enabled operating platform. More information
about Tricon is available at www.triconresidential.com.
Certain statements contained in this news release are
forward-looking statements and are provided for the purpose of
presenting information about management's current expectations and
plans relating to the future. Readers are cautioned that such
statements may not be appropriate for other purposes. These
forward-looking statements include the anticipated completion and
pricing of any securitization transaction, the availability or
anticipated use of any surplus transaction proceeds, and statements
regarding the resumption of the JV's acquisition program. Such
statements are subject to significant known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those expressed or implied by such
statements and, accordingly, should not be read as guarantees of
future performance or results and will not necessarily be accurate
indications of whether or not such results will be
achieved. Factors that could cause actual results to
differ include Tricon's ability to execute the securitization
transaction upon terms acceptable to the Company. Although
management believes that it has a reasonable basis for the
expectations reflected in these forward-looking statements, actual
results may differ from those suggested by the forward-looking
statements for various reasons including but not limited to the
assumptions, risks and uncertainties described above. These
forward-looking statements reflect current expectations of the
Company as at the date of this news release and speak only as at
the date of this news release. The Company does not undertake any
obligation to publicly update or revise any forward-looking
statements except as may be required by applicable law.
The certificates will not be registered under the United
States Securities Act of 1933, as amended, and may not be offered
or sold in the United States
absent registration or an applicable exemption from registration
requirements. The certificates will be offered and sold in
the United States in accordance
with Rule 144A. This press release shall not constitute an offer to
sell or the solicitation of any offer to buy nor shall there be any
sale of the certificates in any jurisdiction in which such offer,
solicitation or sale would be unlawful under the laws of such
jurisdiction.
SOURCE Tricon Residential Inc.