CHIP Mortgage Trust to Issue $125 million of Medium Term Notes

TORONTO, March 25, 2014 /CNW/ - CHIP Mortgage Trust ("CMT") today announced that it has arranged the sale of $125 million of senior medium term notes (the "Notes"). The dealer syndicate for the sale was led by RBC Capital Markets and included Scotia Capital Inc. and CIBC World Markets Inc. The Notes have a coupon of 2.203%, are provisionally rated AAA (sf) by DBRS Limited and have an expected final payment date of March 30, 2017. The sale is expected to close on or about April 1, 2014.

CMT will use the proceeds of this issue to fund mortgage balances in CMT and to refinance Senior Class E short term notes held by HomEquity Bank.

"We are very satisfied with this transaction" said Gary Krikler, Senior Vice President and Chief Financial Officer. "Demand for the Notes was particularly strong and came from a broad investor base. Medium term notes are an important source of funding, and the attractive pricing of this issue further supports our profit potential. Our access to a variety of sources of capital has increased the robustness and agility of our 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, reports to shareholders, 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, fluctuating interest rates, asset quality and rates of default 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.  HomEquity Bank is the only national provider of reverse mortgages to homeowners aged 55 and over, Canada's fastest growing demographic segment. HomEquity Bank originates and administers Canada's largest portfolio of reverse mortgages under the CHIP Home Income Plan brand. CMT, a special purpose entity, finances a portion of the mortgage portfolio with medium term notes.

SOURCE: CHIP Mortgage Trust

please contact: Gary Krikler, Senior Vice President and Chief Financial Officer, [phone], or Scott Cameron, Vice President, Finance, [phone].