TORONTO, July 25, 2017 /CNW/ - Home Capital Group Inc.
(TSX:HCG) ("Home Capital" or the "Company") is pleased to report it
has received additional proceeds from previously announced asset
sales and fully repaid the outstanding balance under the Company's
$2 billion credit facility provided
by a wholly owned subsidiary of Berkshire Hathaway Inc.
("Berkshire").
"The full payout of all amounts owing on the Berkshire credit
facility is an important next step that highlights the strength of
our current liquidity position as we focus on delivering future
success," said Robert Blowes,
Interim Chief Financial Officer.
The full repayment of the Berkshire backstop credit facility
significantly reduces interest expense for the Company going
forward. The Company will continue to pay a stand by fee of 1% on
undrawn funds until the Berkshire facility matures one year from
the initial funding date.
The Company received proceeds of approximately $662 million from the previously announced
arrangement to sell certain commercial mortgage assets. The Company
has received an aggregate amount of approximately $1.13 billion on the sale and discharges of
commercial mortgages in connection with its initiatives to increase
liquidity. A final closing is expected to be completed during
the Company's third quarter.
As of July 25, 2017, the Company's
aggregate available liquidity and credit capacity stood at
approximately $3.59 billion including
an undrawn amount of $2 billion under
the Company's credit facility agreement with Berkshire.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within
the meaning of applicable Canadian securities legislation. Please
refer to Home Capital's 2016 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.
SOURCE Home Capital Group Inc.