CHIP Mortgage Trust Issues $175 million of Medium Term Notes

TORONTO, Nov. 15, 2016 /CNW/ - CHIP Mortgage Trust ("CMT" or the "Trust") today announced that it has concluded the sale of $175 million of senior medium term notes (the "Notes").  The dealer syndicate for the sale was led by RBC Dominion Securities and BMO Nesbitt Burns, and included CIBC World Markets, Scotia Capital, TD Securities and National Bank Financial. The Notes have a coupon of 2.981%, are rated AAA (sf) by DBRS Limited and have an expected final payment date of November 15, 2021.

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

"We are very pleased with the overwhelming response to our offering, which has been heavily oversubscribed," said Atul Chandra, Senior Vice President and Chief Financial Officer. "As a result of several structural enhancements, which have resonated extremely well with investors, demand for the Notes was exceptionally strong, with the broadest investor distribution ever of any CMT offering, including the addition of a number of new investors to the program. Medium term notes are, and will continue to be, a key source of funding for our rapidly growing 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 HomEquity Bank (the "Bank"). The Bank is a Schedule 1 Canadian bank and the only national provider of reverse mortgages, which are offered to senior homeowners aged 55+, representing Canada's fastest growing demographic segment. The Bank originates and administers Canada's largest portfolio of reverse mortgages under CHIP Reverse Mortgage ™ and Income Advantage ™ brands. The Bank has been the main underwriter of reverse mortgages in Canada since its predecessor, Canadian Home Income Plan, pioneered the concept in 1986.

CMT, a special-purpose entity, finances a portion of its mortgage portfolio with medium term notes.

SOURCE CHIP Mortgage Trust

Atul Chandra, Senior Vice President and Chief Financial Officer, [phone], or John Garofano, Treasurer [phone].