/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, May 4 /CNW/ - Home Capital Group Inc. (TSX: HCG) ("Home
Capital") is pleased to announce the closing of its previously
announced offering of $150 million 5.20% debentures due May 4, 2016
(the "Debentures"). Home Capital has received net proceeds from the
offering of approximately $149.2 million after deducting the agents'
fee and expenses of the offering. The Debentures are being offered on
an agency basis by a syndicate of agents led by Scotia Capital Inc. and
including BMO Nesbitt Burns Inc., Desjardins Securities Inc., RBC
Dominion Securities Inc. and Cormark Securities Inc.
Home Capital intends to use $100 million of the net proceeds to provide
additional capital to Home Trust Company, a wholly-owned subsidiary of
Home Capital, to meet regulatory requirements for its further growth.
The balance of the net proceeds will be used for Home Capital's general
corporate purposes, including possibly as additional capital for Home
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
Debentures in any jurisdiction in which such offer, solicitation, or
sale would be unlawful prior to registration or qualification under the
securities laws of that jurisdiction.
* * * * * * *
Caution Regarding Forward-looking Statements
This news release contains certain forward-looking statements as defined
under applicable Canadian securities laws. Forward-looking statements
are typically identified by words such as "will," "believe," "expect,"
"anticipate," "estimate," "plan," "may," and "could" or other similar
expressions. By their very nature, these statements require us to make
assumptions and are subject to inherent risks and uncertainties,
general and specific, which may cause actual results to differ
materially from the expectations expressed in the forward-looking
statements. Forward-looking statements are made in connection with
business objectives and targets, Company strategies, operations,
anticipated financial results and the outlook for the Company, its
industry, and the Canadian economy. These statements regarding expected
future performance are "financial outlooks" within the meaning of
National Instrument 51-102. Please see the risk factors, which are set
forth in detail on pages 37 through 48 in the Company's 2010 Annual
Report, as well as its other publicly filed information, which may be
located at www.sedar.com, for the material factors that could cause the
Company's actual results to differ materially from these statements.
These risk factors are material risk factors a reader should consider,
and include credit risk, liquidity and funding risk, structural
interest rate risk, operational risk, investment portfolio risk,
strategic business risk, reputational risk, and regulatory and legal
risk along with additional risk factors that may affect future results.
Forward-looking statements are in the Report to the Shareholders and
the Outlook Sections in this Annual Report. These risks and
uncertainties include, but are not limited to, global capital market
activity, changes in government monetary and economic policies, changes
in interest rates, inflation levels and general economic conditions,
legislative and regulatory developments, competition and technological
change. The preceding list is not exhaustive of possible factors. These
and other factors should be considered carefully and readers are
cautioned not to place undue reliance on these forward-looking
statements. The Company does not undertake to update any
forward-looking statements, whether written or verbal, that may be made
from time to time by it or on its behalf, except as required by
SOURCE Home Capital Group Inc.
For further information:
Gerald M. Soloway, CEO, or
Martin Reid, President