CALGARY, Alberta--(BUSINESS WIRE)--Walton Edgemont Development Corporation (the “Corporation”) announced that the Corporation has paid, effective today, its second interest payment on the 8% unsecured, subordinated, convertible, extendable debentures (“Offering Debentures”) by issuing to holders of the Offering Debentures, on a pro rata basis, that principal amount of interest debentures (the “Interest Debentures”) equal to the amount of interest owing under the Offering Debentures.
The Interest Debentures are 8% unsecured, subordinated, convertible, extendable debentures of the Corporation and have substantially the same terms as the Offering Debentures. The issuance of the Interest Debentures is in accordance with the terms of the trust indenture governing the Offering Debentures which were disclosed in the Corporation's June 27, 2011 prospectus (the “Prospectus”).
The Offering Debentures were issued as part of the Corporation’s Prospectus offering. The Offering Debentures are unsecured and bear interest at a rate of 8% per annum. Interest on the debentures is calculated each June 30, and is payable annually on or before September 30. For this second payment, interest is calculated from June 30, 2012 to June 29, 2013, for total interest of approximately $1,869,491.
The decision to settle the interest through the issuance of Interest Debentures was primarily a result of deviations in the current cash flow when compared to the cash flow assumptions in the Corporation’s original business model. These deviations were due to subdivision and engineering drawing approvals from the City of Edmonton taking longer than anticipated, which delayed the receipt of proceeds from Phase 1 lot sales in the development.
In March of 2014, each investor will receive, by mail, a T5 from the Corporation’s transfer agent or the shareholder’s brokerage firm. The T5 will indicate the amount of interest that the Offering Debenture holder is required to report as a result of the issuance of the Interest Debentures.
Additional Information
Launched in 2011, the Corporation owns a 201.5-acre residential project in southwest Edmonton, Alberta. The project is being developed in four phases and marketed under the name “Woodhaven Edgemont.”
The Corporation is managed by Walton Asset Management L.P. and the development of the properties is managed by Walton Development and Management (Alberta) LP, both of which are members of the Walton Group of Companies.
The Walton Group of Companies is a multinational group of real estate investment and development companies headquartered in Calgary, Alberta, Canada. As one of North America’s leading land-based real estate investment and development firms, our expertise is in the research, acquisition, management and development of strategically located land in major growth corridors throughout Canada and the U.S. Walton currently manages 78,000 acres, laying the foundation for communities where people can live, work and play, and creating wealth for our clients around the globe. Since 1979, Walton has returned $1.5 billion CAD* in client distributions.
For more information about the Walton Edgemont Development Corporation, please visit www.sedar.com. For more information about Walton, visit www.Walton.com.
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*As of June 30, 2013, the amount returned is unaudited and consists of:
- Exit proceeds on sales of pre-development land;
- Distributions, interest and principal repayment on development projects; and
- Interest and principal repayment on corporate bonds.
This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This news release contains forward looking information, and actual future results may differ from what is disclosed in this news release. The risks, uncertainties and other factors that could influence results are described in the Prospectus and other documents filed with Canadian securities regulatory authorities and available online at www.sedar.com.
