Canada Housing Trust™ No. 1 Completes $4.7B, $9B and $5.6B Public Offerings

Canada Housing Trust™ No. 1, a special purpose securitization trust, completed several two-tranche debt financings. The first, on February 25, 2009, consisted of the issuance of 4.10 per cent Canada Mortgage Bonds, Series 23 (Re-Opening), in an aggregate principal amount of $2.5 billion and Floating Rate Canada Mortgage Bonds, Series 25, in an aggregate principal amount of $2.2 billion for a combined total of $4.7 billion of Canada Mortgage Bonds, provided with Canada's sovereign guarantee through Canada Mortgage and Housing Corp. (CMHC).

The trust completed the second two-tranche debt financing on March 24, 2009. It consisted of the issuance of 4 per cent Canada Mortgage Bonds, Series 16 (Re-Opening), in an aggregate principal amount of $2 billion and 2.20 per cent Canada Mortgage Bonds, Series 26, in an aggregate principal amount of $7 billion for a combined total of $9 billion of Canada Mortgage Bonds, provided with Canada's sovereign guarantee through CMHC.

The trust completed the third two-tranche debt financing on May 27, 2009. It consisted of the issuance of 4.10 per cent Canada Mortgage Bonds, Series 23 (Re-Opening), in an aggregate principal amount of $2.5 billion and Floating Rate Canada Mortgage Bonds, Series 27, in an aggregate principal amount of $3.1 billion for a combined total of $5.6 billion of Canada Mortgage Bonds, provided with sovereign guarantee through Canada CMHC.

CMHC was represented in-house by Reem Hindieh, Marc-André Sirois and Cezary Fudali, who were assisted by Borden Ladner Gervais LLP, 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 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 Series 23 (Re-Opening), the underwriting syndicate was led by CIBC World Markets Inc., BMO Nesbitt Burns Inc., Deutsche Bank Securities Limited and RBC Dominion Securities Inc.

For Series 25, the syndicate was led by BMO Nesbitt Burns Inc., CIBC World Markets Inc., Merrill Lynch Canada Inc. and RBC Dominion Securities Inc.

For both Series 16 and Series 26, the underwriting syndicate was led by The Toronto-Dominion Bank, CIBC World Markets Inc., Merrill Lynch Canada Inc. and RBC Dominion Securities Inc.
For both Series 23 (Second Re-Opening) and Series 27, the underwriting syndicate was led by Merrill Lynch Canada Inc., BMO Nesbitt Burns Inc., CIBC World Markets 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 Ronald Wilson (tax), in Toronto; and Scott Tayne (corporate and securities) and Erica Duncan (tax) in New York.