The mortgage lender says that asset sales has enabled it to repay the outstanding balance on the facility, which means that the company is able to avoid ongoing interest payments, although the 1% fee for the standby facility remains.
“The full payout of all amounts owing on the Berkshire credit facility is an important next step that highlights the strength of our current liquidity position as we focus on delivering future success,” said Robert Blowes, Interim Chief Financial Officer.
Credit and liquidity stood at $3.59 billion as of Tuesday, including the $2 billion facility.
Home Capital shares gained on the news Wednesday before pulling back as investors weighed the potential impact of OSFI’s proposed ban on bundling of residential mortgages.
More market update:
The $2 billion credit facility that Home Capital investor Berkshire Hathaway arranged for the lender has been repaid.