By Cristal Cody
Prospect News, Jan. 26 - Homeq Corp. said Tuesday that subsidiary CHIP Mortgage Trust sold C$175 million 3.97% senior medium-term notes (DBRS: AAA) due Feb. 1, 2016.
The notes were priced to yield 138 basis points over the corresponding banker's acceptance rate.
The notes are unconditionally guaranteed by Homeq.
RBC Capital Markets Corp. was the lead manager. Co-managers included Scotia Capital Inc. and CIBC World Markets Inc.
CHIP Mortgage will use the proceeds to redeem the remaining $136.8 million of series 2008-1 medium-term notes before the final payment date of May 16, 2011 and to repay a portion of the series 2007-3 notes on May 2.
Toronto-based CHIP Mortgage Trust provides reverse mortgages for senior homeowners. Through its subsidiaries, Homeq finances its portfolio of reverse mortgages through a combination of equity, senior and subordinated medium-term notes and term deposits.
| Issuer: | CHIP Mortgage Trust
|
| Guarantor: | Homeq Corp.
|
| Amount: | C$175 million
|
| Maturity: | Feb. 1, 2016
|
| Securities: | Senior medium-term notes
|
| Bookrunner: | RBC Capital Markets Corp.
|
| Co-managers: | Scotia Capital Inc., CIBC World Markets Inc.
|
| Coupon: | 3.97%
|
| Spread: | 138 bps over corresponding banker's acceptance rate
|
| Pricing date: | Jan. 25
|
| Settlement date: | Feb. 1
|
| Rating: | DBRS: AAA
|
| Distribution: | Canada
|
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