Home Capital Group Inc. Announces Commencement of Substantial Issuer Bid

TORONTO, March 8, 2016 /CNW/ - Home Capital Group Inc. ("Home Capital" or the "Company") (TSX: HCG) today announced that it has formally commenced its substantial issuer bid (the "Offer"), pursuant to which Home Capital has offered to repurchase for cancellation up to C$150,000,000 of its common shares (the "Shares") from shareholders for cash. The Offer is being made by way of a "Dutch auction" and the Offer prices range from C$34.00 to C$38.00 per Share (in increments of C$0.10 per Share). The Offer represents up to 4,411,765 Shares or approximately 6.3% of Home Capital's 69,965,680 total issued and outstanding Shares. The directors and management of the Company have advised that they will not tender any of their Shares pursuant to the Offer.

The Dutch auction procedure allows shareholders to select the price, within the specified range, at which each shareholder is willing to sell all or a portion of the Shares that such shareholder owns. Upon expiration of the Offer, Home Capital will select the lowest tendered price that will allow it to purchase C$150,000,000 of its Shares (the "Purchase Price"). Shares properly tendered at or below the Purchase Price and not withdrawn will be purchased at the Purchase Price (subject to applicable withholding taxes, if any), subject to proration to the extent the aggregate cost to purchase all such Shares exceeds C$150,000,000. All Shares tendered at prices higher than the Purchase Price will be returned to shareholders.

The Offer will expire at 5:00 p.m. (Eastern time) on April 15, 2016, unless extended or withdrawn by Home Capital.

The formal offer to purchase and issuer bid circular, together with the related letter of transmittal and notice of guaranteed delivery (the "Offer Documents"), containing the terms and conditions of the Offer and instructions for tendering Shares, among other things, are being mailed to shareholders and will be filed on March 9, 2016 with the applicable securities regulators and will be available on SEDAR at www.sedar.com.

None of Home Capital or its Board of Directors makes any recommendation to shareholders as to whether to tender or refrain from tendering any or all of their Shares to the Offer or as to the purchase price or prices at which shareholders may choose to tender Shares. Shareholders are urged to read the Offer Documents carefully and in their entirety, and to consult their own financial, tax and legal advisors and to make their own decisions whether to tender or refrain from tendering their Shares to the Offer and, if so, how many Shares to tender and at what price or prices.

Any questions or requests for assistance in tendering Shares to the Offer may be directed to RBC Dominion Securities Inc., the dealer manager for the Offer, or Computershare Investor Services Inc., the depositary for the Offer.

This press release is neither an offer to purchase nor a solicitation of an offer to sell any Shares. The solicitation and the offer to purchase Shares by Home Capital will be made pursuant to the Offer Documents that Home Capital will file with the Canadian securities regulatory authorities and that Home Capital will distribute to its shareholders, copies of which will be available on SEDAR at www.sedar.com. These documents contain important information about the Offer and shareholders of Home Capital are urged to read them carefully.

About Home Capital and Home Trust

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 first 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, CFF 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: Gerald M. Soloway, CEO, or Martin Reid, President, 416-360-4663, www.homecapital.com


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