Canada NewsWire
TORONTO, June 20, 2017
TORONTO, June 20, 2017 /CNW/ - Home Capital Group Inc. ("Home Capital" or, the "Company") (TSX:HCG) is pleased to announce that its subsidiary, Home Trust Company, has entered into a definitive agreement (the "Agreement") with KingSett Capital ("KingSett") on behalf of KingSett Real Estate Mortgage LP No. 3 and KingSett High Yield Fund to sell a portfolio of commercial mortgage assets (the "Portfolio") valued at approximately $1.2 billion. This announcement is in keeping with the Company's previous disclosure that it was pursuing financing and strategic options.
"This transaction will help the Company further stabilize its liquidity position and highlights the flexibility and options created by the quality of our assets", said Bonita Then, Interim President and CEO. "Proceeds from the transaction are expected to have an immediate impact by enabling us to enhance our liquidity and reduce the outstanding debt under the Company's $2 billion credit facility."
Highlights of the Transaction
BMO Capital Markets and RBC Capital Markets acted as financial advisors to Home Capital in connection with the transaction.
About KingSett Capital
KingSett Capital is Canada's leading private equity real estate investment business, co-investing with institutional and high net worth individuals, using active management to deliver premium risk weighted returns. KingSett invests through its Growth, Income and Mortgage funds, which own interests in assets worth over $10 billion.
About Home Capital Group Inc.
Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Please refer to the Home Capital's 2016 Annual Report, available on Home Capital's website at www.homecapital.com, and on the Canadian Securities Administrators' website at www.sedar.com, for Home Capital's Caution Regarding Forward-looking Statements.
SOURCE Home Capital Group Inc.
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