Xceed Mortgage Trust Completes Private Placement of Notes



    TORONTO, March 18 /CNW/ - Xceed Mortgage Corporation (TSX: XMC) and Xceed
Mortgage Trust (XMT) today jointly announced that XMT has completed a private
placement to institutional investors of floating rate notes in the principal
amount of $84.1 million.
    The funds, together with mortgage collections accumulated within XMT in a
cash accumulation account, have been used to retire approximately $95 million
in notes previously issued, which matured on March 17, 2008.
    RBC Capital Markets acted as agent for the placement of the notes. Xceed
Mortgage Corporation is the financial services agent and promoter of XMT.
    On March 17, 2008, DBRS Limited issued a new rating of 'AAA' with respect
to the new floating rate notes. DBRS also reaffirmed its original ratings of
those respective notes that were issued by XMT and rated by DBRS in March of
2007. On that same day, on the basis of changes made to the supplemental trust
agreements of XMT, Standard & Poor's Ratings Services reaffirmed its original
ratings, which were provided on those respective notes that were issued by XMT
and rated by Standard & Poor's in March of 2007.
    As previously disclosed, a second tranche of notes issued by XMT will be
maturing in April. Xceed has determined that the amount of funding, net of
accumulated cash, required to retire approximately $200 million in notes that
are maturing will be between $85 million to $90 million.
    "In view of the current state of the capital markets in Canada, we are
encouraged that we were able to complete this funding. At this time, while we
cannot be certain, we are confident that XMT will be able to issue additional
notes through private placement to institutional investors to raise the
necessary funding required to retire the notes maturing in April," said Ivan
Wahl, Xceed's Chairman and Chief Executive Officer.
    "As expected, however, in view of the continuing illiquidity in the
capital markets, we are incurring increased interest costs associated with
these financings. Accordingly, we expect that Xceed will need to take a
further after-tax write-down of its deferred mortgage interest receivable from
the XMT vehicle of approximately $2 million. This write-down will be recorded
in Xceed's fiscal second quarter ended April 30, 2008," Mr. Wahl said.
    Xceed's shares are traded on the Toronto Stock Exchange (TSX: XMC). To
find out more about Xceed Mortgage Corporation, visit our website at
www.xceedmortgage.com.

    Forward-Looking Statements

    Forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties. Actual
results might differ materially due to various factors such as the competitive
nature of the mortgage industry, the ability of Xceed to continue to execute
its growth and development strategy, and the reliance of Xceed on key
personnel. Xceed assumes no obligation to update these forward-looking
statements, or to update the reasons why actual results could differ from
those reflected in these. Additional information identifying risks and
uncertainties is contained in Xceed's regulatory filings available on its
website and at www.sedar.com. Additional information identifying risks and
uncertainties is also contained in XMT's regulatory filings, which are
separately available at www.sedar.com.





For further information:

For further information: Investor and Media Relations: Richard Wertheim,
Wertheim + Company Inc., (416) 594-1600, wertheim@wertheim.ca

Organization Profile

XCEED Mortgage Corporation

More on this organization

XCEED MORTGAGE TRUST

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890