TORONTO, Nov. 16 /CNW/ - Home Equity Income Trust (TSX: HEQ.UN) ("HOMEQ"
or the "Trust") today announced that $125 million of senior notes and
$15 million of subordinated notes issued by CHIP Master Term Trust in 2002,
had matured and have been repaid. As planned, HOMEQ utilized the proceeds from
a recent issue of medium term notes in its subsidiary, CHIP Mortgage Trust
("CMT"), to retire the maturing notes. Since the completion of the initial
public offering of units of HOMEQ on August 8, 2002, all mortgage originations
and debt financing have been completed through CMT.
"We are experiencing encouraging growth in our portfolio of reverse
mortgages. Following this transaction we will wind up CHIP Master Term Trust
which will further simplify the structure of HOMEQ, reduce overhead and
improve operational efficiency, critical in a growing business," said Gary
Krikler, Senior Vice President and Chief Financial Officer of HOMEQ.
Forward Looking Statements
Home Equity Income Trust from time to time makes written and verbal
forward-looking statements about business objectives, operations, performance,
and financial condition, including, in particular, the forecast of cash
distributions and the likelihood of HOMEQ's success in developing and
expanding its business. These may be included in the Annual Reports,
regulatory filings, reports to unitholders, press releases, Trust
presentations and other communications. These forward-looking statements are
based upon a number of assumptions and estimates that are inherently subject
to significant uncertainties and contingencies, many of which are beyond the
control of HOMEQ. Actual results may differ materially from those expressed or
implied by such forward-looking statements. HOMEQ does not undertake to update
any forward-looking statement, whether written or verbal, that may be made
from time to time.
About Home Equity Income Trust
Home Equity Income Trust provides unitholders with stable monthly cash
distributions from a portfolio of reverse mortgages originated by its wholly
owned subsidiary Canadian Home Income Plan Corporation ("CHIP"). The Trust's
units are rated SR-2 by Standard and Poor's, which assigns this rating to
funds that have "a very high level of cash distribution stability relative to
other rated Canadian income funds." As of September 30, 2007, the portfolio
generating cash returns to the Trust comprised approximately 6,600 reverse
mortgages with an accrued value of $678.3 million, secured by residential
properties across Canada worth approximately of $1.9 billion. CHIP
(www.chip.ca), has been the main underwriter of reverse mortgages in Canada
since pioneering the concept in 1986.
The Trust's units trade on the Toronto Stock Exchange under the symbol
HEQ.UN. Additional information on HOMEQ, including annual and quarterly
reports and the Trust's distribution reinvestment plan, can be viewed at
For further information:
For further information: Gary Krikler, Senior Vice President and Chief
Financial Officer, (416) 413-4679, firstname.lastname@example.org; or Scott Cameron, Vice
President, Finance, (416) 413-6605, email@example.com.