TORONTO, June 1 /CNW/ - HOMEQ Corporation (TSX: HEQ) ("HOMEQ") today announced that it has filed a short form base shelf prospectus with the securities regulatory authorities in each of the provinces of Canada. Under the base shelf prospectus, HOMEQ may issue up to a total of $150 million of common shares, preferred shares and convertible securities, from time to time over the next 25 months. The specific terms and use of proceeds of any securities that HOMEQ may issue will be provided in a supplement to the base shelf prospectus at the time of any offerings.
HOMEQ also announced that its wholly-owned subsidiary, CHIP Mortgage Trust, has filed a short form base shelf prospectus with the securities regulatory authorities in each of the provinces of Canada. Under the base shelf prospectus, CHIP Mortgage Trust may issue up to a total of $750 million of medium term notes from time to time over the next 25 months. The notes will be unconditionally guaranteed by HOMEQ. The specific terms and use of proceeds of any notes that CHIP Mortgage Trust may issue will be provided in a supplement to the base shelf prospectus at the time of any offerings.
"We are experiencing strong growth in our portfolio of reverse mortgages, and as our business continues to grow we will require access to a variety of sources of capital. The base shelf prospectus system allows us to cost effectively raise equity and debt as required", said Gary Krikler, Senior Vice President and Chief Financial Officer of HOMEQ.
Forward Looking Statements
HOMEQ Corporation from time to time makes written and verbal forward-looking statements about business objectives, operations, performance, and financial condition, including the likelihood of HOMEQ's success in developing and expanding its business. These may be included in HOMEQ's and its predecessor's annual reports, regulatory filings, reports to shareholders, press releases, presentations and other communications. These forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of HOMEQ. Actual results may differ materially from those expressed or implied by such forward-looking statements. HOMEQ does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time.
About HOMEQ Corporation
HOMEQ's wholly owned subsidiary HomEquity Bank is Canada's only national provider of reverse mortgages to homeowners aged 60 and over, Canada's fastest growing demographic segment. HomEquity Bank originates and administers Canada's largest portfolio of reverse mortgages under the CHIP Home Income Plan brand. As of March 31, 2010, the mortgage portfolio comprised approximately 7,400 reverse mortgages with an accrued value of $905 million, secured by residential properties across Canada worth approximately $2.5 billion. HomEquity Bank has been the main underwriter of reverse mortgages in Canada since its predecessor, Canadian Home Income Plan, pioneered the concept in 1986.
The Company's shares trade on the Toronto Stock Exchange under the symbol HEQ. Additional information on HOMEQ, including annual and quarterly reports can be viewed at www.homeq.ca.
SOURCE HOMEQ Corporation
For further information: For further information: Gary Krikler, Senior Vice President and Chief Financial Officer, (416) 413-4679, or Scott Cameron, Vice President, Finance, (416) 413-6605