Canada Housing Trust No. 1 Completes $3.55B and $6.25B Public Offerings

Canada Housing Trust No. 1, a special purpose securitization trust, completed two debt financings.

The first, on August 25, 2010, consisted of the issuance of Floating Rate Canada Mortgage Bonds, Series 34 (Re-opening), in an aggregate principal amount of $1,300,000,000 and 3.350 per cent Canada Mortgage Bonds, Series 36, in an aggregate principal amount of $2,250,000,000.

The second debt financing, completed on September 23, 2010, consisted of the issuance of 2.450 per cent Canada Mortgage Bonds, Series 37, in an aggregate principal amount of $6,250,000,000.
All bonds were provided with Canada's sovereign guarantee through Canada Mortgage and Housing Corp. (CMHC).

CMHC was represented in-house by Reem Hindieh and Marc-André Sirois, who were assisted by Borden Ladner Gervais LLP (BLG), counsel to CMHC and special counsel to the trust, with a team that included Rosalind Morrow and Terence Lui (corporate and securities); Stephen Redican, Gus Karantzoulis and Tiffany Murray (banking and financial services) and Larissa Tkachenko (tax) in Toronto, and Johanne Thomas (civil) in Montréal. In addition, Joanne Lucas, in-house counsel at CMHC, acted on Series 34 and 36, and Sabrina Kumar was on BLG's banking and financial services team for Series 37.

In the United States, CMHC and the trust were represented by Kevin Keogh, Sang Ji, Terry O'Brien and Gerret Baur of White & Case LLP.

For both Series 34 and 36, the underwriting syndicate was led by BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc. and The Toronto-Dominion Bank.

For Series 37, the underwriting syndicate was led by RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., Merrill Lynch Canada Inc. and The Toronto-Dominion Bank.

Davies Ward Phillips & Vineberg LLP represented the underwriters, with a team that consisted of Carol Pennycook and Sonny Bhalla (corporate and securities) and Ron Wilson (tax) in Toronto, and Scott Tayne (corporate and securities) and Candice Turner (tax) in New York. In addition, Bradley Ashkin was on the Davies corporate and securities team for Series 34 and 36.