TORONTO, Aug. 28, 2017 /CNW/ - HomEquity Bank (the "Bank") announced that it has arranged a $120 million senior revolving credit facility (the "Facility"), secured by a portfolio of reverse mortgages. This Facility has been provided by a syndicate of five leading lenders and is renewable annually. CIBC served as Sole Lead Arranger and Sole Bookrunner, and will act as Administrative Agent under the Facility. The other syndicate members are ICICI Bank Canada, The Bank of Nova Scotia, National Bank of Canada and Raymond James.
This credit facility adds to the range of options of the Bank in managing its funding requirements, as it continues to focus on consistent and long-term growth. The Bank has been experiencing record-setting growth, with reverse mortgage originations during the first half of this year increasing by 38% over the same period last year, driven by favourable demographics and increased awareness, resulting in growing demand from Canadian seniors.
"We are very pleased with the positive response from our lending syndicate, which resulted in commitments at a level higher than we had targeted," said Atul Chandra, Executive Vice President & Chief Financial Officer. "This additional source of stable funding further enhances the flexibility that HomEquity Bank has for continuing to fund its rapidly growing reverse mortgage business."
Forward Looking Statements
The Bank from time to time makes written and verbal forward-looking statements about business objectives, operations, performance, and financial condition, including, in particular, forecasted mortgage origination growth, as well as the likelihood of its success in developing and expanding its business. Forward–looking statements are typically identified by words such as "will", "should", "believe", "expect", "forecast", "anticipate", "intend", "estimate", "plan", "may" and "could". These statements may be included in the Bank's annual and quarterly reports, regulatory filings, 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 the Bank. The uncertainties and contingencies include, but are not limited to, risks related to capital markets and additional funding requirements, credit and underwriting risk, fluctuating interest rates, asset quality and rates of default, legal and regulatory risk, derivative related risk and reliance on relationships with financial institutions. Actual results may differ materially from those expressed or implied by such forward-looking statements. The Bank does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time, except as required under applicable securities legislation.
About HomEquity Bank
HomEquity Bank, a federally-regulated, Schedule 1 Canadian bank, is the only national provider of the CHIP Reverse Mortgage™ solution. Founded 30 years ago, HomEquity Bank has been helping Canadian homeowners aged 55+ access the value of the equity they have in their homes, maintaining ownership of their home, until they make the decision to sell.
HomEquity Bank has partnered with the Canadian Association of Retired Persons (CARP), Canada's largest non-profit, non-partisan advocacy association for Canadians As We Age. CARP now recommends HomEquity Bank's CHIP Reverse Mortgage™ as a smart and comprehensive solution for Canadians planning for retirement.
HomEquity Bank has ranked on the Canadian Business and PROFIT's 28th annual PROFIT 500 list, the definitive ranking of Canada's Fastest-Growing Companies. HomEquity has also been recognized as an Aon Best Employer – Canada 2017.
SOURCE HomEquity Bank
For further information: Atul Chandra, Executive Vice President & Chief Financial Officer, (416) 628-6892; or John Garofano, Vice-President & Treasurer, (416) 413-4674