CHIP Mortgage Trust, a wholly owned subsidiary of Canadian Reverse Mortgage Provider, HomeEquity Bank, has concluded the sale of C$200m of senior medium-term notes.
The dealer syndicate for the sale was led by TD Securities, CIBC Capital Markets and Scotiabank, and included BMO Capital Markets, National Bank Capital Markets and RBC Capital Markets. The Notes have a coupon of 4.066%, are rated AAA (sf) by DBRS Limited and have an expected final payment date of August 28, 2031.
CMT will use the proceeds of this issue to refinance outstanding indebtedness, acquire mortgages originated by HomeEquity Bank, and to fund ongoing operations.
“Strong investor support has resulted in another very successful issue of medium-term notes by CHIP Mortgage Trust. HomeEquity Bank is pleased that the transaction was heavily oversubscribed with a number of new buyers,” said Atul Chandra, Executive Vice President and Chief Financial Officer.
“HomeEquity Bank’s exceptional operating and financial results as Canada’s leading and original provider of reverse mortgages resonated well with investors and drove very strong demand for these Notes. Medium-term notes are, and will continue to be, a key source of funding for our rapidly growing reverse mortgage business.”
