TORONTO, March 16 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a
leading non-traditional mortgage lender, today announced that Xceed Mortgage
Trust has filed a preliminary prospectus dated March 16, 2007 with Canadian
securities regulators for an offering of more than $500 million
mortgage-backed term notes. Xceed Mortgage Corporation is the financial
services agent and the promoter of Xceed Mortgage Trust.
The offering of term notes, with maturities of up to five years, is being
underwritten by a syndicate of investment dealers led by CIBC World Markets.
The preliminary prospectus is available at www.sedar.com.
The funds raised by the offering will be used to purchase residential
mortgages that have been originated by Xceed Mortgage Corporation and
securitized through another trust.
"This will be the first offering of mortgage-backed term notes by Xceed
Mortgage Trust since we first created this entity and successfully raised
funds to purchase a $531 million pool of residential mortgages in April 2006.
This second transaction allows for further diversification of Xceed's funding
activities and reduces reliance on the short-term commercial paper market,"
said Ivan Wahl, Chairman and Chief Executive Officer of Xceed Mortgage
Corporation. "It gives us greater access to a broader range of institutional
investors, more flexibility, and improved liquidity for the residential
mortgages that we originate.
"This also reflects the growth that Xceed has achieved during the past
year. Earlier this week, we announced our financial results for the fiscal
2007 first quarter, reporting that our mortgage fundings at $340.0 million
were nearly double those in the corresponding 2006 period and that as at
January 31, 2007, we had nearly $2.5 billion in mortgages and other assets
under administration, up 29% from a year earlier," Mr. Wahl said.
Xceed is one of a new breed of alternative residential mortgage lenders
in Canada. Xceed helps Canadians fulfill their aspirations of home ownership.
Its borrowers range from those who have solid credit and income histories, but
have not managed to save a down payment, to those who have gone through
periods with limited and specific credit difficulties but have since recovered
and repaired their credit. A growing proportion of Xceed's applicants are
renters, self-employed entrepreneurs, and recent immigrants to Canada, who may
otherwise not conform to major banks' electronic credit-scoring criteria.
By meeting the needs of Canadians for alternative financing, Xceed
Mortgage Corporation has grown to become one of the largest non-traditional
residential mortgage financing companies in Canada, with mortgage and other
assets under administration of approximately $2.5 billion. Xceed operates in a
market that is estimated to have a potential size of approximately
$70 billion. Xceed's shares are traded on the Toronto Stock Exchange (TSX:
XMC). To find out more about Xceed Mortgage Corporation, visit our website at
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.
For further information:
For further information: Investor and Media Relations: Richard Wertheim,
Wertheim + Company Inc., (416) 594-1600, firstname.lastname@example.org