TORONTO, July 25, 2017 /CNW/ - Home Capital Group Inc. (TSX:HCG) ("Home Capital" or the "Company") is pleased to report it has received additional proceeds from previously announced asset sales and fully repaid the outstanding balance under the Company's $2 billion credit facility provided by a wholly owned subsidiary of Berkshire Hathaway Inc. ("Berkshire").
"The full payout of all amounts owing on the Berkshire credit facility is an important next step that highlights the strength of our current liquidity position as we focus on delivering future success," said Robert Blowes, Interim Chief Financial Officer.
The full repayment of the Berkshire backstop credit facility significantly reduces interest expense for the Company going forward. The Company will continue to pay a stand by fee of 1% on undrawn funds until the Berkshire facility matures one year from the initial funding date.
The Company received proceeds of approximately $662 million from the previously announced arrangement to sell certain commercial mortgage assets. The Company has received an aggregate amount of approximately $1.13 billion on the sale and discharges of commercial mortgages in connection with its initiatives to increase liquidity. A final closing is expected to be completed during the Company's third quarter.
As of July 25, 2017, the Company's aggregate available liquidity and credit capacity stood at approximately $3.59 billion including an undrawn amount of $2 billion under the Company's credit facility agreement with Berkshire.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Please refer to Home Capital's 2016 Annual Report, available on Home Capital's website at www.homecapital.com, and on the Canadian Securities Administrators' website at www.sedar.com, for Home Capital's Caution Regarding Forward-looking Statements.
About Home Capital Group Inc.
Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
SOURCE Home Capital Group Inc.
For further information: Laura Lepore, Assistant Vice President, Investor Relations (416) 933-5652, email@example.com