TORONTO, Aug. 3 /CNW/ - HOMEQ Corporation (TSX: HEQ) ("HOMEQ") today announced that its subsidiary, HomEquity Bank, has concluded the sale of CDN$10,000,000 Subordinated Medium Term Notes (the "Notes") due May 31, 2016 with a coupon of 8.60%. The proceeds of the Notes will be used for regular operating purposes.
The Notes constitute subordinated indebtedness within the meaning of the Bank Act (Canada). The Notes are unrated and qualify as Tier 2 B Capital of HomEquity Bank. The sale was conducted on a private basis.
"We are extremely happy with this transaction. It adds to our already strong capital base and will enable HomEquity Bank to continue the rapid growth experienced since receiving its bank charter in late 2009", 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 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.
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.
SOURCE HOMEQ Corporation
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.