Home Capital Group Inc. Announces Pricing of C$150 Million Public Offering of Debentures


TORONTO, April 29 /CNW/ - Home Capital Group Inc. (TSX: HCG) ("Home Capital") announced today that it has priced its C$150 million offering of debentures due 2016 (the "Debentures"). The Debentures are being offered on an agency basis by a syndicate of agents led by Scotia Capital Inc. and including BMO Nesbitt Burns Inc., Desjardins Securities Inc., RBC Dominion Securities Inc. and Cormark Securities Inc.

The Debentures are being offered and sold at a price of 100% of their face value and will have a semi-annual cash interest coupon of 5.20%. The offering of Debentures is expected to close, subject to market conditions and satisfaction of closing requirements, on or about May 4, 2011.

Home Capital intends to use $100 million of the net proceeds to provide additional capital to Home Trust Company, a wholly-owned subsidiary of Home Capital, to meet regulatory requirements for its further growth. The balance of the net proceeds will be used for Home Capital's general corporate purposes, including possibly as additional capital for Home Trust.

This offering is being made under Home Capital's short form base shelf prospectus dated April 14, 2011 and the Debentures will be issued pursuant to a base trust indenture and supplemental trust indenture to be entered into on the date of closing. The short form base shelf prospectus and final prospectus supplement relating to the Debentures have been filed with certain provincial securities regulatory authorities in Canada.

A copy of the final prospectus supplement and the short form base shelf prospectus may be obtained from Scotia Capital Inc. at 40 King Street West, Scotia Plaza, Toronto, Ontario, M5H 1H1 (416-933-1795 telephone).

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

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Caution Regarding Forward-looking Statements
This news release contains certain forward-looking statements as defined under applicable Canadian securities laws. Forward-looking statements are typically identified by words such as "will," "believe," "expect," "anticipate," "estimate," "plan," "may," and "could" or other similar expressions. By their very nature, these statements require us to make assumptions and are subject to inherent risks and uncertainties, general and specific, which may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Forward-looking statements are made in connection with business objectives and targets, Company strategies, operations, anticipated financial results and the outlook for the Company, its industry, and the Canadian economy. These statements regarding expected future performance are "financial outlooks" within the meaning of National Instrument 51-102. Please see the risk factors, which are set forth in detail on pages 37 through 48 in the Company's 2010 Annual Report, as well as its other publicly filed information, which may be located at www.sedar.com, for the material factors that could cause the Company's actual results to differ materially from these statements. These risk factors are material risk factors a reader should consider, and include credit risk, liquidity and funding risk, structural interest rate risk, operational risk, investment portfolio risk, strategic business risk, reputational risk, and regulatory and legal risk along with additional risk factors that may affect future results. Forward-looking statements are in the Report to the Shareholders and the Outlook Sections in this Annual Report. These risks and uncertainties include, but are not limited to, global capital market activity, changes in government monetary and economic policies, changes in interest rates, inflation levels and general economic conditions, legislative and regulatory developments, competition and technological change. The preceding list is not exhaustive of possible factors. These and other factors should be considered carefully and readers are cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake to update any forward-looking statements, whether written or verbal, that may be made from time to time by it or on its behalf, except as required by securities laws.

SOURCE Home Capital Group Inc.

For further information:

Gerald M. Soloway, CEO, or 
Martin Reid, President

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