Home Trust Company announces closing of residential mortgage-backed securities private placement
Our Toronto and New York offices advised BofA Merrill Lynch as lead placement agent, on a series issuance under the Home Trust Company’s Classic Residential Mortgage-backed Securities (Classic RMBS) Trust program. On February 23, 2022, the Classic RMBS Trust issued an A tranche of notes totalling C$425m that were privately placed with investors in Canada by a syndicate led by BofA Merrill Lynch and co-managed by BMO Capital Markets and RBC Capital Markets. The syndicate also included all of the other major Canadian bank-owned investment dealers. The remaining approximately C$75m of the series 2022-1 notes comprised of the B and Z tranches were taken up by Home Trust. The A tranche is rated AAA(sf) by DBRS and Aaa(sf) by Moody’s.
The Classic RMBS Trust program is an innovative financing program and is Home Trust’s first offering of residential mortgage-backed securities. More importantly, it is one of only a few private residential mortgage-backed securities programs in the Canadian market. As such, it includes some unique, innovative structuring elements. It also represents the first ever private residential mortgage-backed securities program in the Canadian market designed to offer notes to investors both in Canada and the United States.
The Classic RMBS Trust program is an innovative financing program and is Home Trust’s first offering of residential mortgage-backed securities. More importantly, it is one of only a few private residential mortgage-backed securities programs in the Canadian market. As such, it includes some unique, innovative structuring elements. It also represents the first ever private residential mortgage-backed securities program in the Canadian market designed to offer notes to investors both in Canada and the United States.