Home Capital has announced that Berkshire Hathaway’s Columbia Insurance Company unit has completed its initial investment of around $153 million in the mortgage lender.
Subsidiary Home Trust Company has also secured the new $2 billion credit facility from a subsidiary of Berkshire Hathaway which replaces a previous facility from several major lenders.
Home expects to complete the sale of a portfolio of 1100 residential mortgages Friday with the $252 million proceeds paying down some of the new credit facility.
"This new credit agreement is an important backstop for Home Capital as we move forward to put the Company in a stronger position for success," said Bonita Then, interim Chief Executive Officer of Home Capital. "We expect enough liquidity to completely pay down the credit line over coming months, and today's mortgage-sale transaction moves us a step closer to that goal. At that point, the much lower standby fee on this new credit facility will save our Company a significant amount of money compared to the old credit line it replaces."
