Home Capital closes C$425 million private placement of residential mortgage-backed securities

On February 23, 2022, Home Capital Group Inc. (“Home Capital”) and its subsidiary Home Trust Company (“Home Trust” ) announced the closing of a previously disclosed private placement of residential mortgage-backed securities issued by Classic RMBS Trust, a securitization vehicle sponsored by Home Trust. The Series 2022-1 notes are backed by a portfolio of near-prime, uninsured, residential mortgages and are composed of A, B and Z tranches that aggregate to C$500 million.

The Series A tranche of notes totaling C$425 million was sold to accredited investors by a syndicate co-led by BofA Securities, BMO Capital Markets and RBC Capital Markets. The remaining C$75 million of notes, composed of the Series B and Series Z tranches, was retained by Home Trust.

Further information can be found on Business Wire’s website.

Home Capital operates through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential mortgage products, consumer lending and credit card services. In addition, Home Trust and its wholly owned subsidiary, Home Bank, offer deposits via brokers and financial planners, and through a direct-to-consumer deposit brand, Oaken Financial.