TORONTO, Dec. 15 /CNW/ - HOMEQ Corporation (TSX: HEQ) ("HOMEQ") today announced that it's subsidiary, CHIP Mortgage Trust ("CMT") has issued notice to redeem $25 million principal amount of Senior Medium Term Notes, Series 2008-1 (the "Notes") on January 18, 2011. Further notices may be issued to redeem the remaining principal of the Notes prior to the expected final payment date of May 16, 2011.
"We are pleased to be in a position to be able to call a portion of the Notes at this time, effectively utilizing available funds and lessening the refinancing requirement in May 2011", said Gary Krikler, Senior Vice President and Chief Financial Officer.
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 September 30, 2010, the mortgage portfolio comprised approximately 7,800 reverse mortgages with an accrued value of $985 million, secured by residential properties across Canada worth approximately $2.7 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.
HOMEQ'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.
For further information: For further information: Steven K. Ranson, President and Chief Executive Officer, (416) 413-4663 or Gary Krikler, Senior Vice President and Chief Financial Officer, (416) 413-4679