News releases: last year

Shares issued: Class A - 16,764,919 Class B - 3,149,839

 

Halifax, Nova Scotia, May 5, 2009 (TSX: HII.A & HII.B and NYSE Euronext Amsterdam: HII) - Mr. Richard Homburg, Chairman and CEO of Homburg Invest Inc. ("HII" or "Homburg Invest") is pleased to announce that Homburg Invest has received final approval from the Dutch regulator, The Netherlands Authority for the Financial Markets (Autoriteit Financiele Markten) of a Supplement related to the Prospectus of the Homburg Capital Securities A in which Homburg invest is guaranteeing the holders of the Homburg Capital Securities A the right to cash for all quarterly interest payments for up to the first two years after initial issuance. On February 26, 2009, Homburg Invest announced that it had received Dutch Regulatory Approval of its new Homburg Capital Securities A ("HCSA"). The HCSA have a 99 year life and bear interest at 9.5% per annum. Homburg Invest may at its sole option redeem the HCSA in whole or in part after 5 years, and thereafter at any of the quarterly interest payment dates. Homburg Invest has the option to settle any and all of the quarterly interest payments by issuing Class A Preferred shares rather than cash. Each of the HCSA has a face value of EUR 1,000 and will be sold in a minimum subscription of 5 securities, or EUR 5,000. The Prospectus related to the HCSA is for a minimum of 25,000 to a maximum of 75,000 HCSA, for an aggregate principal amount of EUR 25,000,000 to EUR 75,000,000 (CAD $41,250,000 to CAD $123,750,000, based on an exchange rate of 1.65).

 

It was also stated at that same time that Homburg Invest will apply for a listing of the HCSA on NYSE Euronext Amsterdam before January 31, 2011.  Homburg Invest has now set a target date to apply to obtain listing of the HCSA on NYSE Euronext Amsterdam before June 30, 2010 subject to the then prevailing market conditions.

 

In order to provide holders of HCSA additional liquidity Homburg Invest is pleased to announce that for the two year period ending March 31, 2011 Homburg Invest will issue put options for any quarterly interest payments made through the issuance of Class A Preferred shares. These put options will entitle the holders of the HCSA to immediate redemption of any Class A Preferred shares they receive up to March 31, 2011. The put options will be tied to the related HCSA and will only be exercisable within 30 days of the related quarterly interest payment.

 

After giving effect to the two year put options and assumptions on the probability of exercising the early redemption option available to Homburg Invest, the HCSA will have a debt component of approximately 20% based on the present value of both the future principal repayment and the two year put options, and an equity component of approximately 80% based on the future quarterly interest stream, after the first two years. The entire interest payments will be an expense for Canadian Corporate Income Tax purposes. The HCSA will be subordinate to Homburg Invest's existing Homburg Mortgage Bonds and Homburg Bonds and will rank senior to Homburg Invest's Class A Subordinate Voting shares and Class B Multiple Voting shares.

 

Homburg Invest intends to utilize the funds raised to retire existing debt, strengthen its balance sheet, and for general purposes.

 

The HCSA is the latest product to be sold by Homburg Invest to the Dutch market and is a follow up to Homburg Invest's hugely successful Bond program that has seen Homburg Invest raise approximately CAD $675 million in the last 5 years.

 

 

Homburg Invest, with its head office in Halifax, Nova Scotia, is an international real estate investment and development company that owns a diversified portfolio of quality real estate, including office, retail, industrial and residential apartment and townhouse properties in Canada, Europe and the United States. Homburg Invest also owns land assets for development in Calgary and Edmonton, Alberta; Montreal, Quebec; and Charlottetown, Prince Edward Island. In 2007, Homburg Invest completed significant acquisitions totalling over approximately CAD$ 1.1 billion and as of December 31, 2008 has assets of over CAD$ 4.0 billion with an approximate aggregate of 20.2 million square feet of gross leasable area.

 

 

Mr. Richard Homburg

Chairman and CEO

Homburg Invest Inc.

902-468-3395

 

or

 

Mr. Richard Stolle

President and COO

Homburg Invest Inc.

011 31 20 573 3855