TORONTO, May 1, 2017 /CNW/ - Home Capital Group Inc. ("The Company"TSX: HCG) announced that its subsidiary, Home Trust, expects to receive an initial draw today of $1 billion from its $2 billion credit line provided by a facility led by the Healthcare of Ontario Pension Plan, the terms of which were previously announced by the Company on April 27, 2017.
Access to these funds is intended to mitigate the impact of a decline in Home Trust's High Interest Savings Account (HISA) deposit balances.
The balance of HISA deposits is expected to be approximately $391 million on Monday, May 1 after settlements of Friday's transactions.
Total Guaranteed Investment Certificate (GIC) deposits, including Oaken and broker GICs, stood at $12.86 billion as at April 28.
Home Capital also advises that the terms of the agreement will have a material impact on earnings, and will leave the Company unable to meet previously announced financial targets.
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]