By Cristal Cody
Tupelo, Miss., Sept. 19 - CHIP Mortgage Trust priced C$100 million of 3.663% senior medium-term notes due Sept. 25, 2018 (DBRS: AAA) at par in a private placement on Thursday, according to the company and market sources.
"We are very satisfied with this transaction," Gary Krikler, chief financial officer, said in a release.
"Demand for the notes was particularly strong and came from a broad investor base. Medium-term notes are an important source of funding, and the attractive pricing of this issue further supports our profit potential."
Scotia Capital Inc. was the lead manager. Co-managers included RBC Capital Markets and CIBC World Markets Inc.
CHIP Mortgage Trust will use the proceeds to fund mortgage balances and to refinance senior class E short-term notes held by Toronto-based reverse mortgage provider HomEquity Bank.
The trust, a subsidiary of HomEquity Bank, finances a portion of the company's mortgage portfolio with medium-term notes.
| Issuer: | CHIP Mortgage Trust
|
| Amount: | C$100 million
|
| Maturity: | Sept. 25, 2018
|
| Securities: | Senior medium-term notes
|
| Bookrunner: | Scotia Capital Inc.
|
| Co-managers: | RBC Capital Markets and CIBC World Markets Inc.
|
| Coupon: | 3.663%
|
| Price: | Par
|
| Yield: | 3.663%
|
| Pricing date: | Sept. 19
|
| Settlement date: | Sept. 25
|
| Ratings: DBRS: AAA
|
| Distribution: | Canada private placement
|
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