June 20, 2017 / 12:20 PM / 6 months ago

BRIEF-Home Capital to sell commercial mortgage portfolio valued at C$1.2 bln

June 20 (Reuters) - Home Capital Group Inc:

* Home Capital announces agreement with kingsett capital to sell commercial mortgage assets valued at approximately C$1.2 billion

* Home Capital Group Inc - proceeds expected to enhance liquidity and reduce amount drawn under company’s C$2 billion credit facility

* Home Capital Group Inc - initial gross proceeds to company will be 97 pct of outstanding principal value of mortgages

* Home Capital - under terms of agreement, Kingsett will purchase portfolio for 99.61 pct of outstanding principal value, less a share of future credit losses

* Home Capital Group Inc - expects to record a loss on transaction of approximately $15 million, before income taxes

* Home Capital Group - net cash proceeds to company in q3 of 2017 are expected to be approximately $1.16 billion

* Home Capital Group - transaction helps stabilize home capital’s liquidity position

* Home Capital - proceeds from transaction are expected to have an immediate impact by “enabling us to enhance our liquidity and reduce outstanding debt”

* Home Capital announces agreement with Kingsett Capital to sell commercial mortgage assets valued at approximately $1.2 billion Source text for Eikon: Further company coverage:

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