Business & Finance
Business and Finance
Business and Finance
Fri, March 4, 2011
Thu, March 3, 2011 Xceed Mortgage Corporation Successfully Refinances Okanagan Funding Trust
TORONTO, March 3 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a Canadian provider of residential mortgages, today announced the successful refinancing of $64 million of mortgages held by Okanagan Funding Trust (OFT), a securitization facility established by a large international bank that had purchased mortgages from Xceed in the past.
The transaction results in $41 million of mortgage assets being sold to a Canadian financial institution, with the remainder being purchased by Xceed in exchange for the termination of its B-Note interest in OFT.
As a result of this transaction, Xceed will have no ongoing investment in, or exposure to, OFT in the form of either subordinated notes or any other asset.
This transaction also eliminates the company's reliance on OFT for funding this pool of mortgages, and removes the risk associated with an uncommitted funding line and the right of the counterparty to call the line and realize on its security at any point.
Xceed is in the process of finalizing the financial-statement impact of this transaction, which will be booked in the fiscal 2011 second quarter. Xceed expects to release its fiscal 2011 first-quarter financial results on the morning of March 10, 2011.
About Xceed Mortgage
Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of residential mortgages that it originates in Canada. The company has approximately $1.6 billion of mortgages and other assets under administration. Xceed's shares are traded on the Toronto Stock Exchange (TSX: XMC). To find out more about Xceed Mortgage Corporation, visit our website at [ www.xceedmortgage.com ].
Forward-Looking Statements
Forward-looking statements in this document are based on current expectations that are subject to significant risks and uncertainties. Actual results might differ materially due to various factors such as the competitive nature of the mortgage industry, the ability of Xceed to continue to execute its growth and development strategy, and the reliance of Xceed on key personnel. Xceed assumes no obligation to update these forward-looking statements, or to update the reasons why actual results could differ from those reflected in these. Additional information identifying risks and uncertainties is contained in Xceed's regulatory filings available on its website and at [ www.sedar.com ].
