Home Capital announces sale

by Justin da Rosa on 20 Jun 2017
Home Capital has announced an agreement with KingSett Capital to sell a commercial mortgage portfolio valued at around $1.2 billion.

“This transaction will help the company further stabilize its liquidity position and highlights the flexibility and options created by the quality of our assets,” Bonita Then, Interim President and CEO of Home Capital, said.
“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.”

Under the agreement terms, Kingsett will purchase the portfolio for 99.61% of outstanding principal value.

Home Capital expects to incur a loss of $15 million before income taxes on the deal.

The deal is the latest bid by the embattled channel lender to stabilize itself following Ontario Securities Commission allegations it misled investors in 2015 and recent dwindling deposits.

Last week, Home announced a settlement with the OSC and class action matters.

“Under its proposed settlement with the Commission, Home Capital will make a payment of $10 million and reimburse Commission costs in the amount of $500,000,” Home Capital said. “Gerald Soloway will be reprimanded, prohibited from acting as a director or officer of any reporting issuer for a period of four years and pay an administrative penalty in the amount of $1 million.

“Each of Robert Morton and Martin Reid will be reprimanded, prohibited from acting as a director or officer of any reporting issuer for a period of 2 years and pay an administrative penalty in the amount of $500,000.”
 

Post a Comment

Most Trending News

How much do real estate agents make in Toronto?
News

Commission isn't everything. You should also take other things into consideration such as the cost of marketing, licensing, renting an office, and splitting commissions with the brokerage.

Read More
Can I use the word 'realtor' in advertising?
News

As a member of CREA, you can use REALTOR® in your advertisements but there are a few basic rules that you should follow in order to use the trademark correctly.

Read More
Personal real estate corporation Ontario
News

A personal real estate corporation (PREC) belongs to an individual agent or a broker. There can be many benefits to starting your own PREC in Ontario.

Read More