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Email this8:19 am
April 6, 2013
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Good news for Home Capital Group. It announced yesterday that it has paid down its $2 billion backstop from Berkshire Hathaway:
The full repayment of the Berkshire backstop credit facility significantly reduces interest expense for the Company going forward. The Company will continue to pay a stand by fee of 1% on undrawn funds until the Berkshire facility matures one year from the initial funding date.
…
As of July 25, 2017, the Company’s aggregate available liquidity and credit capacity stood at approximately $3.59 billion including an undrawn amount of $2 billion under the Company’s credit facility agreement with Berkshire.
10:57 am
December 17, 2016
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What's the status of HCG's liquidity agreement with HOOPP?
7:48 pm
April 6, 2013
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Their agreement, with the group led by Healthcare of Ontario Pension Plan, was terminated on June 29:
On closing [June 29], Home Trust Company drew approximately $1.65 billion on the New Credit Agreement [with a wholly-owned subsidiary of Berkshire Hathaway Inc.] to repay all amounts outstanding under the Old Credit Agreement and the Old Credit Agreement was terminated.
1:49 pm
December 12, 2009
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On closing [June 29], Home Trust Company drew approximately $1.65 billion on the New Credit Agreement [with a wholly-owned subsidiary of Berkshire Hathaway Inc.] to repay all amounts outstanding under the Old Credit Agreement and the Old Credit Agreement was terminated.
Exactly, the Berkshire subsidiary revolving credit agreement/standby facility was to replace the exorbitant HOOPP line, specifically as it had no "commitment fee" (as I understood it, HCG paid $100 million to HOOPP before any standby fee or interest was paid on drawn funds which, when taken together, amounted to more than 20% APR. I suspect HOOPP CEO Jim Keohane is likely going to face increasing regulatory scrutiny, and perhaps pressure for him to retire as HOOPP's CEO, given the obvious conflicting interests in his fiduciary duty to HOOPP and to HCG, where he sat on the Board at the time. 🙁
At any rate, HOOPP is generally regarded as one of the more riskier pension plans in Canada when compared to CPPIB, Caisse de depot de placements du Quebec, bcIMC, AIMCo, OTPP, OMERS and now the new IMCO. 😉
Cheers,
Doug
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