/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR FOR DISTRIBUTION IN THE UNITED
STATES./
TORONTO, July 30, 2021 /CNW/ - Tricon Residential Inc.
("Tricon" or the "Company") (TSX: TCN), an owner and operator of
single-family rental homes and multi-family rental apartments in
the United States and Canada, announced today that it has issued a
notice of redemption to the holders of its 5.75% extendible
convertible unsecured subordinated debentures due March 31, 2022 (the "Debentures"), representing a
redemption in full of all of the currently outstanding Debentures.
The Debentures will be redeemed on September
9, 2021 (the "Redemption Date"), in accordance with their
terms, at a total redemption price of US$1,000 plus accrued and unpaid interest of
US$25.52 up to but excluding the
Redemption Date, both per US$1,000
principal amount. The redemption price has been determined in
accordance with the provisions of the Indenture. Tricon intends to
satisfy the redemption price through the issuance of common shares
in the capital of Tricon ("Common Shares") at 95% of the U.S.
dollar equivalent of the 20-day weighted average trading price of
the Common Shares on the fifth trading day preceding the Redemption
Date, with cash to be paid for the accrued and unpaid interest on
the Debentures and in lieu any fractional Common Shares that would
otherwise be issued.
The Debentures have a conversion price of US$10.46 (C$13.02)
per Common Share, which is lower than the current trading price of
the Common Shares. Accordingly, at current trading prices, holders
of Debentures have an economically advantageous opportunity to
convert their Debentures to Common Shares prior to the Redemption
Date and may do so in accordance with the terms of the indenture
dated March 17, 2017 with respect to
the Debentures (the "Indenture"). Registered holders of Debentures
that wish to convert must provide written notice of conversion to
TSX Trust Company prior to September 8,
2021, being the last business day immediately preceding the
Redemption Date. Non-registered holders of Debentures that wish to
convert should contact their respective brokerage firm or financial
institution well in advance of this deadline to ensure
sufficient time to comply with internal deadlines for the
redemption process.
Non-registered holders (banks, brokerage firms or other
financial institutions) that maintain their interests in the
Debentures through CDS & Co. ("CDS") should contact their CDS
customer service representative with any questions about the
redemption or conversion. Alternatively, beneficial holders with
any questions about the redemption or conversion should contact
their respective brokerage firm or financial institution holding
interests in the Debentures through CDS on their behalf and comply
with all internal redemption processes they may have.
Notices of redemption are being delivered today to TSX Trust
Company, the Debenture trustee and to CDS. For more information,
holders of Debentures should refer to the redemption notice
delivered to them.
Subject to prior regulatory approval, Tricon intends to have the
Debentures de-listed from the Toronto Stock Exchange following
their redemption.
About Tricon Residential Inc.
Tricon Residential is an owner and operator of a growing
portfolio of over 33,000 single-family rental homes and
multi-family rental apartments in the
United States and Canada
with a primary focus on the U.S. Sun Belt. Our commitment to
enriching the lives of our residents and local communities
underpins Tricon's culture and business philosophy. We strive to
continuously improve the resident experience through our
technology-enabled operating platform and innovative approach to
rental housing. At Tricon Residential, we imagine a world where
housing unlocks life's potential. For more information visit
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 statements regarding: the
redemption of the Debentures, the issuance of Common Shares as
payment of the redemption price, the payment of cash in respect of
interest and fractional shares and the anticipated de-listing of
the Debentures. In some cases, forward-looking information can be
identified by such terms as "will", "would", "anticipate",
"anticipated", "expect" and "expected". The forward-looking
statements in this news release are based on certain assumptions,
including assumptions that all required regulatory approvals will
be obtained on the necessary terms in a timely manner; and that
Tricon will, on the redemption date, meet all of the required terms
and conditions of the Debentures (including those set forth in the
applicable debenture indenture) in order to effect the redemption
on the terms currently contemplated (which includes assumptions
respecting trading prices of the Common Shares), as well as with
respect to the impact of COVID-19 on the Company's operations,
business and financial results. 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. Such risks include
the risks described in the Company's current annual information
form and interim management's discussion and analysis, available on
SEDAR at www.sedar.com, which risks may be dependent on market
factors and not entirely within the Company's control. 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. 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 economic advantage for holders of Debentures to convert
to Common Shares is based on the current trading price of Common
Shares as of the date hereof. If the conversion price becomes
greater than 95% of the U.S. dollar equivalent of the 20-day
weighted average trading price of the Common Shares on the fifth
trading day preceding the Redemption Date, holders of Debentures
will no longer have an economic advantage to convert their
Debentures prior to the Redemption Date. Tricon does not undertake
any obligation to update this news release if these circumstances
change.
SOURCE Tricon Residential Inc.