Home Capital Closes $500 Million Committed Standby Secured Funding Facility with Bank of Montreal and Royal Bank of Canada
Home Capital Group Inc. (TSX:HCG.TO) ("Home Capital" or the "Company") is pleased to announce the closing of the previously announced two year $500 million committed standby secured funding facility (the "Credit Facility") entered into by its subsidiary, Home Trust Company, and Bank of Montreal and Royal Bank of Canada. The Credit Facility replaces a $2 billion credit facility provided by a wholly owned subsidiary of Berkshire Hathaway Inc. that matured today.
The Company does not intend to draw on the Credit Facility in the ordinary course of business as its current liquidity profile provides sufficient liquidity and funding for its business activities. Any draws on the Credit Facility will be secured against a portfolio of mortgages originated by Home Trust Company.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation, including relating to the Company's expectations regarding its future liquidity and access to debt financing. Please refer to the Home Capital's 2017 Annual Report, available on Home Capital's website at www.homecapital.com, and on the Canadian Securities Administrators' website at www.sedar.com, for Home Capital's Caution Regarding Forward-looking Statements.
About Home Capital Group Inc.
Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
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SOURCE: Home Capital Group Inc.
Home Capital Group Inc. Laura Lepore, 416-933-5652 Assistant Vice President, Investor Relations firstname.lastname@example.org