CMHC Closes $3.4B Guaranteed Bond Offering

Canada Housing Trust No. 1, a special purpose securitization trust, closed an offering of $3.4 billion in bonds guaranteed by Canada Mortgage and Housing Corporation (CMHC), a re-opening of the second series of bonds issued under CMHC’s new Canada Mortgage Bond programme (CMB). The deal closed on February 27, 2002.

Borden Ladner Gervais LLP represented CMHC and was special counsel to the trust. The BLG team included Rosalind Morrow (securities and derivatives), John Tobin (tax and structured finance), Stephen Redican (banking and structured finance), Matt Campbell (securities), Jonathan Willson (tax) and Gus Karantzoulis (structured finance) in Toronto. BLG assisted CMHC’s in-house group, led by Douglas Tyler and Reem Hindieh, and including Louise Michel and Hélène Mathieu. Civil law services were provided by Johanne Thomas, Pierre Côté and Pierre d’Etcheverry of BLG’s Montreal office. Robert Mullen and Lalenya Siegel of Milbank, Tweed, Hadley & McCloy LLP advised CMHC and the trust on U.S. legal matters.

The underwriters, led by RBC Dominion Securities Inc., Merrill Lynch & Co. Inc., CIBC World Markets Inc., Deutsche Back Securities and TD Securities Inc., were represented by Davies Ward Phillips & Vineberg LLP, with a team comprised of Carol Pennycook and Andrea Daly (corporate), Ron Wilson (tax) and Guy Lander and Scott Tayne in New York.