Home Capital Group Inc. has secured a $500-million standby credit line from two unnamed Canadian banks to exchange its extra pricey emergency funding facility from Warren Buffett’s Berkshire Hathaway Inc.
The Toronto-based different mortgage lender says its subsidiary Home Belief Firm has inked a letter of dedication from two Canadian Schedule 1 banks for the two-year secured line of credit facility.
Home Capital’s chief monetary officer Brad Kotush says this new credit line has a decrease combination price than its present $2-billion funding facility, which matures on the finish of June.
Final June, Buffett’s funding agency purchased a stake in Home Capital Group and offered its subsidiary with a $2-billion line of credit.
The credit line gave the Toronto-based lender some a lot wanted liquidity after it confronted a run on deposits, amid allegations of deceptive disclosure to traders.
Kotush says Home Capital has ample liquidity and has considerably decreased its reliance on demand deposits, and doesn’t intend to attract on the brand new, cheaper credit facility