Healthcare of Ontario Pension Plan CEO Jim Keohane appeared on BNN late Friday afternoon. "For every dollar we lend Home Capital they are going to provide us with 2 dollars of mortgages as collateral" https://twitter dot com/Keubiko/status/858043490344849408 "It is more akin to a DIP deal" https://twitter dot com/Keubiko/status/858044129678381057 Video link: http://www.bnn.ca/video/home-capital-not-a-risky-investment-for-us-hoopp-ceo~1111585 Article: http://www.bnn.ca/home-capital-depo...ion-from-savings-accounts-in-one-day-1.737275 .
April 26 announcement: https://finance.yahoo.com/news/home-capital-announces-non-binding-114200655.html April 27 announcement: https://finance.yahoo.com/news/home-capital-secures-2-billion-123700917.html April 28 announcement: https://finance.yahoo.com/news/home-capital-provides-deposit-withdrawals-110000906.html .
So Hempton wrote a post on this, which is good, as usual... http://brontecapital.blogspot.co.uk/2017/04/home-capital-group-it-is-time-for.html I have to say, the whole thing stinks, big-time.
It's good to see Hempton addressing the issue of deposit insurance - which allows entities like Home Capital and Equitable Group to fund themselves for much longer than they could in a free market. Which then becomes even more farcical when Home Capital does this deal for a $100 million fee plus interest of up to $200 million. .
April 26 announcement: https://finance.yahoo.com/news/home-capital-announces-non-binding-114200655.html April 27 announcement: https://finance.yahoo.com/news/home-capital-secures-2-billion-123700917.html April 28 announcement: https://finance.yahoo.com/news/home-capital-provides-deposit-withdrawals-110000906.html May 1 announcement (7.44am ET): https://finance.yahoo.com/news/home-capital-reports-initial-draw-114400705.html .
Liquid assets: April 24: $1.5 billion + $200 million (April 26 announcement) April 25: $1.3 billion + $200 million (April 27 announcement) April 27: $750 million + $200 million (April 28 announcement) Not reported in May 1 announcement .
HISA balances: March 28: $1.991 billion (26 April announcement) April 24: $1.4 billion (26 April announcement) April 27: $814 million (27 April announcement) April 28: $521 million (28 April announcement) May 1: $391 million (May 1 announcement) GIC deposits: March 28: $13.06 billion (26 April announcement) April 24: $13.01 billion (26 April announcement) April 25: $12.98 billion (27 April announcement) April 26: $12.97 billion (28 April announcement) April 28: $12.86 billion (1 May announcement) .
After the close on 2 May, Home Capital postponed the reporting of its financial results to after the close on Thursday 11 May. https://finance.yahoo.com/news/home-capital-release-first-quarter-211100149.html The conference call will be held on Friday 12 May at 8am. Separate to that, after the close on 2 May, S&P downgraded Home Capital's long term credit rating to B- from B+. http://www.reuters.com/article/homecapital-results-delay-idUSL1N1I502Y https://www.standardandpoors.com/en_US/web/guest/ratings/press-releases .
http://www.dbrs.com/research/310127...ntains-all-ratings-under-review-negative.html On May 3, DBRS downgraded Home Capital to CCC .
"The Home Capital saga: A timeline of key events and allegations" http://business.financialpost.com/n...saga-a-timeline-of-key-events-and-allegations Strangely enough, the timeline ends on April 24, 2 days before the company announced its agreement to borrow up to 2 billion CAD. .