RE:2-4 Weeks to wait. Oops, correction:
Current:
Mortgages = 172.4M
Debentures (40M + 30M) = 70M
Promissory note = 32M
Total Debt ~274.5M
Cash on hand 23.8M
After Scenario 1:
Mortgages = ~100M
Debentures = 40M
Promissory note = 0
Total Debt ~140M
Cash on Hand 23.8M
The debentures are not due to 2026, and there is a total owing on 49 Ontario around 80M. So it is likely we will just pay down the 80M mortgage debt, and leave the debentures for Q1 2026 to deal with. That would free up around 20M in cash.
After Scenario 2:
Mortgages = ~92.4M
Debentures = 70M
Promissory note = 0
Total Debt ~162.4M
Cash on Hand ~46.2M
Either way, its all guessing with announcement coming. It would be irresponsible to hold this amount of cash, so it will likely need to be deployed with further debt repayment or a new accretive investment.
GLTA
InvestSmarter wrote: December 17-19 is the latest we will have to wait for information as the city will have a full review of 18.2 success.
End of November is when submission closes.
Olivia Chow ordered staff to approve applications immediately, meaning approval will likely be next week for most applications.
What does this mean? Dream has likely already submitted, or will submit this week. Mr. Cooper stated they would submit the application immediately. We will have the approval stamp anytime in the next 2 weeks. I'm confident in order to obtain CMHC Construction financing, MPCT will already have its partner selected and ready. It seems impossible to obtain Financing without knowing who CMHC is lending to.
My guess is we will have an announcement before December 17-19, likely between the end of next week and the 2nd week of December. Of course, this is just my best educated guess.
In regards to partnerships, Dream Unlimited, Tricon, & Kilmer seem likely to be our partners on this project of which each invest 45M for a total valuation of 180M. MPCT will own 25%, meaning we will receive 135M. Again, just a guess to the outcome.
With total corporate debt of ~ 270M, we will repay 30M in Debentures (due 2026), and a 32M Promissory note, leaving roughly a 130M Mortgage and a 2027 expiring 40M Debenture. We will end up with around 135-137M corporate level debt. This will save 7.7M in annual interest costs and opens up a serious discussion on Distribution Reinstatement.
The promissory note is tied to our Victory Silos land, and likely could be reissued if ever needed, but the rate is BA + 2.35%.
The transaction will greatly reduce the risk in MPCT, while increasing free cash flow. It is one of several material transactions in the near to mid term (Zibi Land and Scarborough Junction Sales).
Having said all this, there are other outcomes possible, including selling 2/3 or only 1/2. However Mr Cooper has hinted a few times of a 75% sale, leaving this as the most likely outcome. Most our holdings are 25%, with a select few up to 50%.
18. City Council direct the Executive Director, Housing Secretariat, in consultation with the Deputy City Manager, Development and Growth Services and the Chief Financial Officer and Treasurer, to report directly to the December 17, 18 and 19, 2024 meeting of City Council with updates from the Call for Application process referenced in Part 11 above, including any further approvals necessary to approve additional affordable rental homes.