TORONTO, Oct. 18 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a leading
non-traditional mortgage lender, today announced that it has successfully
arranged a new $300 million committed mortgage securitization facility.
This bank-sponsored facility will be provided through a trust that will
issue commercial paper that is rated by an international rating agency and
supported by a global-style liquidity arrangement.
"We are very pleased to have succeeded in arranging this new
securitization facility, particularly in view of the turbulence that has
continued to undermine the commercial paper market. Our ability to complete
this arrangement is a testament to the quality of the residential mortgages
that Xceed has funded," said Ivan Wahl, Chairman and Chief Executive Officer
of Xceed Mortgage Corporation.
"We intend to commence securitization sales to this facility during the
company's fiscal fourth-quarter," Mr. Wahl said. "Although it is not possible
to predict how long the current capital market turbulence will last and the
costs associated with this facility are higher than our historical funding
costs, we believe that this facility when combined with our existing warehouse
facility will be sufficient to meet Xceed's funding requirements until market
liquidity is restored."
Xceed is one of a new breed of alternative residential mortgage lenders
in Canada. Xceed helps Canadians fulfill their aspirations of home ownership.
Its borrowers range from those who have solid credit and income histories, but
have not managed to save a down payment, to those who have gone through
periods with limited and specific credit difficulties but have since recovered
and repaired their credit. A growing proportion of Xceed's applicants are
renters, self-employed entrepreneurs, and recent immigrants to Canada, who may
otherwise not conform to major banks' electronic credit-scoring criteria.
By meeting the needs of Canadians for alternative financing, Xceed
Mortgage Corporation has grown to become one of the largest non-traditional
residential mortgage financing companies in Canada, with mortgage and other
assets under administration of approximately $2.7 billion. Xceed operates in a
market that is estimated to have a potential size of approximately
$70 billion. Xceed's shares are traded on the Toronto Stock Exchange (TSX:
XMC). To find out more about Xceed Mortgage Corporation, visit our website at
Forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties. Actual
results might differ materially due to various factors such as the competitive
nature of the mortgage industry, the ability of Xceed to continue to execute
its growth and development strategy, and the reliance of Xceed on key
personnel. Xceed assumes no obligation to update these forward-looking
statements, or to update the reasons why actual results could differ from
those reflected in these. Additional information identifying risks and
uncertainties is contained in Xceed's regulatory filings available on its
website and at www.sedar.com.
For further information:
For further information: Investor and Media Relations: Richard Wertheim,
Wertheim + Company Inc., (416) 594-1600 or (416) 518-8479 (cell),