TORONTO, Dec. 16 /CNW/ - Xceed Mortgage Corporation (TSX:XMC) today made
the following announcements:
Refinancing of Okanagan Funding Trust
Xceed has entered into a preliminary agreement with a Canadian financial
institution to refinance approximately $75 million of residential
mortgages currently serviced by Xceed and owned by Okanagan Funding
Trust (OFT). Although this financing, if completed, will result in an
estimated pre-tax accounting loss in the range of $5 million to $7
million for Xceed, it will also result in the eventual conversion into
cash of a significant portion of Xceed's $25 million junior note
investment in OFT.
Xceed has been working in conjunction with the senior note holder in OFT
since August of 2010, with a view to refinancing both the junior and
senior OFT notes, and is pleased to have reached this preliminary
agreement. The transaction is subject to signing definitive
documentation and other conditions. There can be no assurances that
this transaction will be completed, or that, notwithstanding this
preliminary agreement, the senior note holder will not then choose to
exercise its rights to sell the underlying mortgage portfolio on terms
that could be more disadvantageous to Xceed.
QSPE-XCD Trust Amortization Event
Xceed has also received notice from the administrator of QSPE-XCD trust,
to which Xceed had in the past sold residential mortgages, that the
trust had experienced an amortization event. The event is in itself not
material for Xceed, although because it will change the timing of
receipt of cash from the trust, it will result in a small accounting
About Xceed Mortgage
Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of
insured residential mortgages that it originates in Canada. The
company had approximately $1.7 billion of mortgages and other assets
under administration at the end of its fiscal 2010 third quarter.
Xceed's shares are traded on the Toronto Stock Exchange (TSX: XMC). To
find out more about Xceed Mortgage Corporation, visit our website at www.xceedmortgage.com.
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.
SOURCE XCEED Mortgage Corporation
For further information: For further information:
please contact Investor and Media Relations:
Wertheim + Company Inc.
(416) 594-1600 ext. 223 or (416-518-8479 cell)