Home Capital Announces Prices for Mortgage-Backed Residential Securities, Series 2021-1

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TORONTO–() – Home Capital Group Inc. (“Home Capital”) (TSX: HCG) and its subsidiary Home Trust Company (“Home Trust” or “Company”) are announcing prices for private placement of mortgage-backed securities. (“RMBS”) to be issued by Classic RMBS Trust, a securitization mechanism sponsored by the Home Trust. The securities are backed by a portfolio of unsecured home mortgages that have been issued and will be serviced by Home Trust. The securities consist of tranches A, B and Z totaling $ 400 million (“Series 2021-1 Notes”).

A tranche of Notes A totaling $ 340 million will be sold to accredited investors in Canada and the United States by a syndicate led by BofA Securities and jointly managed by BMO Capital Markets and RBC Capital Markets. The syndicate also includes all other major investment dealers owned by Canadian banks. The remaining $ 60 million of 2021-1 Series Notes, including tranches B and Z, will be withheld by Home Trust.

Tranche A is expected to be rated AAA (sf) from DBRS and Aaa (sf) from Moody’s and bears an interest rate of 1.433% per annum. This is Home Trust’s second offering for international mortgage-backed securities. The company plans to close the private placement around June 21, 2021, subject to normal closing conditions.

“Home Trust continues to pursue our strategy of diversifying funding sources on a competitive basis,” said Brad Kotusch, executive vice president and chief financial officer at Home Capital. “Following the success of our initial RMBS offering in 2019, we are delighted to support the continued development of the cross-border private RMBS market in 2021. We look forward to continuing to build on this positive approach when considering future RMBS issues. ”

The 2021-1 Series Notes are not publicly tradable under the securities laws of any province or territory of Canada and may not be offered or sold in Canada, directly or indirectly, except in accordance with applicable private placement exceptions. Series 2021-1 Notes are not registered and will not be registered under the US Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the US without registration or an applicable exemption from the registration requirements of the Securities Act. papers. Series 2021-1 Notes are offered in a private placement solely to individuals who are reasonably qualified to be Institutional Buyers under Rule 144A under the Securities Act, or outside the United States to non-US individuals under Rule S Of the Securities Act. This press release does not constitute an offer to sell or a solicitation to buy the 2021-1 Series Notes in any jurisdiction, or an offer to buy or an offer. The press release is issued in accordance with Rule 135c of the Securities Act.

About Home Capital: Home Capital Group Inc. is a publicly traded company, listed on the Toronto Stock Exchange (HCG), and operates through its main subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgages, securitization of residential mortgage products, consumer lending, and credit card services. In addition, Home Trust offers deposits through brokers and financial planners as well as brand deposits directly to Oaken Financial consumers. Home Trust also conducts business through its subsidiary Home Bank. Licensed to do business throughout Canada, we have offices in Ontario, Alberta, British Columbia, Nova Scotia and Quebec.

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