TORONTO, May 8, 2017 /CNW/ - Home Capital Group Inc. ("The Company"TSX: HCG) today announced that it has drawn down a total of $1.4 billion from its $2 billion credit line, the terms of which were announced by the Company on April 27, 2017.
The Company and its advisers continue to work towards seeking lower cost sustainable funding solutions and to evaluate strategic alternatives to solidify and strengthen its successful mortgage origination platform.
In addition, the Company announced the suspension of its quarterly dividend to prudently manage liquidity.
The Company's existing mortgage portfolio continues to perform well. The Company's liquid assets stood at $1.160 billion as of end of day May 5, 2017.
Home Trust's High Interest Savings Account (HISA) deposit balances are expected to be approximately $192 million on Monday, May 8, 2017 after the settlement of transactions that took place on Friday, May 5, 2017.
Total Guaranteed Investment Certificate (GIC) deposits, including Oaken and broker GICs, stood at $12.64 billion as at May 5, 2017 compared with $12.86 billion as at April 28, 2017. Oaken savings accounts stood at $167 million as at May 5, 2017 compared $222 million as at April 28, 2017.
Home Trust's GICs and HISA deposits are eligible for Canada Deposit Insurance Corp. coverage.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Please refer to the 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: Media: Boyd Erman, Longview Communications Inc., (416) 649-8007, [email protected] or Peter Block, Longview Communications Inc., (416) 649-8008, [email protected]; Investors: Laura Lepore, Assistant Vice President, Investor Relations, (416) 933-5652, [email protected]