Equitable Group Announces Closing of $65 Million Series 10
Debenture Offering
/NOT FOR DISTRIBUTION TO UNITED
STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
TORONTO,
Oct. 22, 2012 /CNW/ - Equitable Group
Inc. ("Equitable" or the "Company") today announced that it has
closed its previously announced underwritten private placement
offering (the "Offering") of $65
million of 5.399% debentures due October 23, 2017 (the "Series 10
Debentures").
The Offering was conducted by a syndicate of underwriters led by
TD Securities Inc. and RBC Dominion Securities Inc., and which
included GMP Securities L.P., BMO Nesbitt Burns Inc. and CIBC World
Markets Inc.
The gross proceeds of the offering are being used by the Company
to acquire debentures from its wholly owned subsidiary, The
Equitable Trust Company (the "Series 10 Trustco Debentures"). It is
anticipated that the Series 10 Trustco Debentures will qualify as
Tier 2B capital of Equitable Trust (subject to the receipt of
approval of the Superintendent of Financial Institutions
Canada). Equitable Trust intends to use the proceeds to fund
upcoming redemptions of its existing subordinated debt (subject to
the prior approval of the Superintendent of Financial Institutions
Canada) and for general corporate purposes, including the expansion
of its business. The Company plans to use the proceeds received
from Equitable Trust on the redemption of certain of Equitable
Trust's subordinated debentures to fully repay an outstanding
$12,500,000 bank term loan prior to
January 31, 2013.
ABOUT EQUITABLE GROUP INC.
Equitable Group Inc. is a niche mortgage lender. Its primary
business is first charge mortgage financing, which it offers
through its wholly-owned subsidiary, The Equitable Trust Company.
Founded in 1970, Equitable Trust is a federally incorporated trust
company. It actively originates mortgages across Canada. The Company serves single family,
small and large commercial borrowers and their mortgage advisors.
It also serves the investing public across all Canadian provinces
and territories as a provider of insured Guaranteed Investment
Certificates. Equitable Group's common shares and Series 1
preferred shares are traded on the Toronto Stock Exchange under the
symbols ETC and ETC.PR.A respectively. Visit the Company on-line at
www.equitabletrust.com and click on Investor Relations.
The securities offered have not been registered
under the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any State in which
such offer, solicitation or sale would be unlawful.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
Statements made by the Company in this news release, in other
filings with Canadian securities regulators and in other
communications include forward-looking statements within the
meaning of applicable securities laws ("forward-looking
statements"). These statements include, but are not limited to,
statements about the Company's objectives, strategies and
initiatives, financial result expectations and other statements
made herein, whether with respect to the Company's businesses or
the Canadian economy. Generally, forward-looking statements can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "planned", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", "it is anticipated", or
"believes", or variations of such words and phrases which state
that certain actions, events or results "may" , "could", "would",
"might" or "will be taken", "occur" or "be achieved."
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, closing of transactions, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to risks related to capital markets and additional
funding requirements, fluctuating interest rates and general
economic conditions, legislative and regulatory developments, the
nature of our customers and rates of default, and competition as
well as those factors discussed under the heading "Risk Management"
in the Management's Discussion and Analysis and in the Company's
documents filed on SEDAR at www.sedar.com. All material assumptions
used in making forward-looking statements are based on management's
knowledge of current business conditions and expectations of future
business conditions and trends, including their knowledge of the
current credit, interest rate and liquidity conditions affecting
the Company and the Canadian economy. Although the Company believes
the assumptions used to make such statements are reasonable at this
time and has attempted to identify in its continuous disclosure
documents important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. Certain material
assumptions are applied by the Company in making forward-looking
statements, including without limitation, assumptions regarding its
continued ability to fund its mortgage business at current levels,
a continuation of the current level of economic uncertainty that
affects real estate market conditions, continued acceptance of its
products in the marketplace, as well as no material changes in its
operating cost structure and the current tax regime. There can be
no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
does not undertake to update any forward-looking statements that
are contained herein, except in accordance with applicable
securities laws.
SOURCE Equitable Group Inc.