August 17, 2020
Redemption Update
regarding the
Bridging Income Fund and Bridging Mid-Market Debt Fund
(collectively, the “Funds”)
Lifting of Temporary Suspension on Redemptions
Bridging Finance Inc. (“Bridging“) is pleased to announce that the temporary suspension of redemptions in the Bridging Income Fund and Bridging Mid-Market Debt Fund (the “Funds“) will be lifted effective Monday, August 17, 2020. As such, the Bridging Income Fund LP, Bridging Income RSP Fund, Bridging Mid-Market Debt Fund LP and Bridging Mid-Market Debt RSP Fund will re-open for purchases and redemption orders as of Monday, August 17, 2020.
New Redemption Requests
Given the continued uncertainties surrounding the COVID-19 pandemic and the potential effects of a second wave of COVID-19 cases on financial markets, Bridging will be implementing a temporary limit on monthly redemptions of CAD$10,000,000 on the Bridging Income Fund and CAD$5,000,000 on the Bridging Mid-Market Debt Fund.
These limits will be inclusive of all redemptions received within the LP and RSP versions of the Funds and are being temporarily placed in order to ensure unitholders are adequately protected. In the event that the monthly redemptions received by the Funds exceed the temporary limits mentioned above, the redemption requests will be processed on a pro-rata basis to ensure all redemption requests are treated equally amongst all unitholders. In these cases, any redemption amount not processed during the month will be cancelled and will need to be re-submitted.
Existing Redemption Requests (Trade Date of March 31, April 30 and May 31)
In regards to the Bridging Mid-Market Debt Fund (LP and RSP), Bridging is pleased to announce that sufficient liquidity has been created by Bridging in order to process all of the outstanding redemption requests. All outstanding requests will be processed on the August 31, 2020 trade dates and unitholders will receive their redemption proceeds near the end of September 2020.
In regards to the Bridging Income Fund (LP and RSP), Bridging is also pleased to announce that as a result of certain upcoming loan maturities and the anticipated sale of certain loans at full face-value, absent any unexpected situations or events, Bridging should be in a position to process all of the outstanding redemptions on the August 31, 2020 trade date with the redemption proceeds being paid to unitholders near the end of September 2020.
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We thank you for your support during these unprecedented times as we remain focused on managing the Funds liquidity and preserving unitholder value all while continuing to deliver the consistent and uncorrelated returns your clients have become accustomed to.
Please feel free to contact us if you have any questions.
Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca
Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca
David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;
Disclaimer:
The Funds are generally exposed to several risks. See the offering memorandum of the Funds for a complete description of these risks. The Funds are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about each Fund including their investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Funds and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication is for educational purposes and does not constitute investment advice or an offer to sell or a solicitation to purchase securities of the Funds.
Bridging Finance is the manager of the Funds. Prepared by Bridging Finance Inc. (August/2020)