CHIP Mortgage Trust Issues $125 Million of Medium Term Notes

TORONTO, July 15, 2021 /CNW/ - CHIP Mortgage Trust ("CMT" or the "Trust") today announced that it has concluded the sale of $125 million of senior medium term notes (the "Notes"). The dealer syndicate for this sale was led by Scotiabank and CIBC Capital Markets and included National Bank Financial Markets, BMO Capital Markets, RBC Capital Markets and TD Securities. The Series 2021-1 Notes, issued on July 15, 2021, have a coupon of 1.503%, are rated AAA (sf) by DBRS Limited and have an expected final payment date of November 15, 2024.

CMT will use the proceeds of this issue to refinance outstanding indebtedness, fund mortgages originated by HomeEquity Bank, and fund ongoing operations.

"We received considerable interest from investors in our Notes and have closed another very successful issue, priced at the lowest-ever coupon for any offering by CMT," said Atul Chandra, Executive Vice President and Chief Financial Officer, HomeEquity Bank. "Our Bank has been delivering exceptional operating and financial results, which resonate well with investors, resulting in strong demand for these Notes and the addition of a number of new investors to our program. Medium term notes are, and will continue to be, a key source of funding for our reverse mortgage business."

Forward-Looking Statements

CMT from time to time makes written and verbal forward-looking statements about business objectives, operations, performance, and financial condition, including, in particular, forecasted mortgage origination growth, as well as the likelihood of its success in developing and expanding its business. Forward–looking statements are typically identified by words such as "will", "should", "believe", "expect", "forecast", "anticipate", "intend", "estimate", "plan", "may" and "could".  These statements may be included in CMT's annual and quarterly reports, regulatory filings, press releases, presentations and other communications. These forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of CMT. The uncertainties and contingencies include, but are not limited to, risks related to capital markets and additional funding requirements, credit and underwriting risk, fluctuating interest rates, asset quality and rates of default, legal and regulatory risk, derivative related risk and reliance on relationships with financial institutions, as well as those factors discussed in the documents filed on SEDAR. Actual results may differ materially from those expressed or implied by such forward-looking statements.  CMT does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time, except as required under applicable securities legislation.

About CHIP Mortgage Trust

CMT is a wholly-owned subsidiary of HomeEquity Bank (the "Bank"). The Bank is a Schedule 1 Canadian Bank offering the CHIP Reverse Mortgage and CHIP Open solutions. The company was founded more than 30 years ago as an annuity-based solution addressing the financial needs of Canadians who wanted to access the equity of their top asset – their home. The Bank is committed to empowering Canadians age 55 plus to live the retirement they deserve, in the home they love. HomeEquity Bank is a portfolio company of Birch Hill Equity Partners Management Inc., a mid-market private equity firm based in Toronto with more than $3 billion in capital under management. For more information, visit www.chip.ca.

SOURCE CHIP Mortgage Trust

Yvonne Ziomecki, HomeEquity Bank, email: [email protected], cell: 647-723-6812