Home Capital secures cheaper credit line from dual Canadian banks

Home Capital Group Inc. has cumulative a $500-million standby credit line from dual unnamed Canadian banks to reinstate a some-more dear puncture appropriation trickery from Warren Buffett’s Berkshire Hathaway Inc.

The Toronto-based choice debt lender says a auxiliary Home Trust Company has inked a minute of joining from dual Canadian Schedule 1 banks for a two-year cumulative line of credit facility.

Home Capital’s arch financial officer Brad Kotush says this new credit line has a reduce total cost than a stream $2-billion appropriation facility, that matures during a finish of June.

Last June, Buffett’s investment organisation bought a interest in Home Capital Group and supposing a auxiliary with a $2-billion line of credit.

The credit line gave a Toronto-based lender some most indispensable liquidity after it faced a run on deposits, amid allegations of dubious avowal to investors.

Kotush says Home Capital has sufficient liquidity and has significantly reduced a faith on direct deposits, and does not intend to pull on a new, cheaper credit facility

Article source: http://www.cbc.ca/news/business/home-capital-1.4665391?cmp=rss