Home Capital Announces Preliminary Results of Substantial Issuer Bid

TORONTO--(BUSINESS WIRE)--Home Capital Group Inc. (“Home Capital” or the “Company”) (TSX: HCG) announced today the preliminary results of its substantial issuer bid (the “Offer”) to repurchase for cancellation up to C$300,000,000 of its common shares (the “Shares”).

In accordance with the terms and conditions of the Offer and based on a preliminary count by Computershare Investor Services Inc. (the “Depositary”), Home Capital expects to take up and purchase for cancellation 6,896,551 Shares at a purchase price of C$43.50 per Share (the “Purchase Price”). The Shares expected to be purchased under the Offer represent approximately 13.68% of the Shares issued and outstanding (undiluted) as at December 21, 2021. After giving effect to the Offer, 43,499,284 Shares are expected to be issued and outstanding.

“Concluding this substantial issuer bid represents a significant step in moving toward our target level of capital,” stated Yousry Bissada, President and Chief Executive Officer of Home Capital. “We have now returned over $900 million to shareholders since December 2018 and we intend to continue returning capital to shareholders by applying to renew our current Normal Course Issuer Bid in Q1 2022.”

Shareholders had the opportunity under the Offer to tender Shares until 5:00 p.m. (Eastern time) on December 21, 2021. The Offer was made by way of a “modified Dutch auction” with Offer prices ranging from C$43.50 to C$48.50 per Share. Based on preliminary results, approximately 16.45 million Shares were tendered under the Offer (including Shares tendered by notice of guaranteed delivery). As the Offer was oversubscribed, shareholders who made auction tenders at C$43.50 per Share and purchase price tenders are expected to each have approximately 45% of their successfully tendered Shares purchased by Home Capital, other than “odd lot” tenders, which are not subject to proration.

The full details of the Offer are described in the offer to purchase and issuer bid circular dated November 15, 2021, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which were filed and are available on SEDAR at www.sedar.com.

The number of Shares to be purchased under the Offer and the Purchase Price and the proration factor are preliminary, subject to verification by the Depositary and assume that all Shares tendered through notice of guaranteed delivery will be delivered within the two trading day settlement period. Home Capital will announce the final results following completion of take-up of the Shares.

This news release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell Shares.

Caution Regarding Forward Looking Statements

This press release contains forward-looking information within the meaning of applicable Canadian securities legislation, including relating to the Company’s completion of a substantial issuer bid, the size of the substantial issuer bid and the renewal of its normal course issuer bid. Please refer to Home Capital's 2021 Third Quarter Report, available on Home Capital’s website at www.homecapital.com, and on the Canadian Securities Administrators’ website at www.sedar.com, for Home Capital’s Caution Regarding Forward-looking Statements.

About Home Capital

Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending and credit card services. In addition, Home Trust and its wholly owned subsidiary, Home Bank, offer deposits via brokers and financial planners, and through a direct-to-consumer brand, Oaken Financial. Licensed to conduct business across Canada, we have offices in Ontario, Alberta, British Columbia, Nova Scotia, and Quebec.