By Cristal Cody
Prospect News, April 29 - Home Capital Group Inc. priced C$150 million of 5.2% senior debentures due April 15, 2016 at par on Friday, an informed bond source said.
The notes (/BBB/BBB) priced at a spread of 265 basis points over the Canadian bond curve, in line with early morning guidance.
The notes have a Canada call feature at 66 bps.
Scotia Capital Inc. was the lead manager. Co-managers were BMO Nesbitt Burns Inc., Desjardins Securities Inc., RBC Dominion Securities Inc. and Cormark Securities Inc.
The proceeds will be used to provide additional capital to Home Trust Co., a subsidiary of Home Capital, to meet regulatory requirements for further growth and for general corporate purposes.
Home Capital Group is a Toronto-based mortgage lender and credit services provider.
| Issuer: | Home Capital Group Inc.
|
| Amount: | C$150 million
|
| Maturity: | April 15, 2016
|
| Securities: | Senior debentures
|
| Bookrunners: | Scotia Capital Inc.
|
| Co-managers: | BMO Nesbitt Burns Inc., Desjardins Securities Inc., RBC Dominion Securities Inc., Cormark Securities Inc.
|
| Coupon: | 5.2%
|
| Price: | Par
|
| Yield: | 5.2%
|
| Spread: | 265 bps over Canadian bond curve
|
| Call feature: | 66 bps
|
| Pricing date: | April 29
|
| Settlement date: | May 4
|
| Ratings: | Standard & Poor's: BBB
|
| Fitch: BBB
|
| Distribution: | Canada
|
| Price talk: | 265 bps over Canadian bond curve
|
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