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BRIEF-Home Capital reaches agreement with Berkshire Hathaway for investment of up to C$400 mln in common equity
June 22, 2017 / 3:31 AM / 2 months ago

BRIEF-Home Capital reaches agreement with Berkshire Hathaway for investment of up to C$400 mln in common equity

June 21 (Reuters) - Home Capital Group Inc:

* Home Capital reaches agreement with Berkshire Hathaway for investment of up to C$400 million in common equity and provision of new C$2 billion credit facility

* Proceeds from common equity investment provide additional liquidity and capital in near term

* Home Capital Group Inc - replacement of existing emergency credit facility on improved terms, providing company with a lower cost backstop facility

* Says approximately C$247 million of C$400 million equity investment is subject to shareholder approval

* Home Capital Group - Berkshire Hathaway to indirectly acquire C$400 million of Co's common shares on private placement basis

* Berkshire Hathaway to provide a new c$2 billion line of credit facility to home trust company

* Home Capital Group-board determined that Berkshire transaction provides current shareholders with best available combination of transaction certainty

* Expects to have sufficient liquidity over coming months to repay all amounts outstanding under new credit agreement

* Home Capital Group Inc - Berkshire will not be granted any rights to nominate directors of company or any governance rights as an equity holder

* Home Capital - Berkshire, through unit, agreed to make initial investment of C$153,225,739 to buy 16,044,580 common shares on a private placement basis

* Says each common share in initial investment will be issued at a price of C$9.55 per common share

* Home Capital-Berkshire, through unit, agreed to make additional investment of C$246,774,261 to buy 23,955,420 common shares on private placement basis

* Says each common share in additional investment will be issued at a price of approximately C$10.30 per common share

* Home capital-co will draw on new credit agreement to repay all amounts outstanding under existing credit agreement, existing credit agreement will be terminated Source text for Eikon: Further company coverage:

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