Hollis Receivables Raises Over $1B

Hollis Receivables Term Trust closed its seventh and eighth public offerings of asset-backed securities on April 26, 2001, raising in excess of $1 billion. On that date, Hollis issued approximately $425 million of three-year notes and approximately $640 million of five-year notes, each backed by an undivided interest in a pool of personal line of credit receivables originated by The Bank of Nova Scotia and acquired by Hollis from the proceeds of the offerings. These offerings were led by Scotia Capital Inc. This transaction was one of the first securitizations to conform to the new US (FAS 140) and Canadian (Guideline AcG-12) accounting rules, which are mandatory for transfers of receivables occurring after July 1, 2001. They were also the first public offerings by an issuer of asset-backed securities to take advantage of the new National Instrument 44-102 shelf distribution system.

The McCarthy Tétrault team that acted for Hollis and The Bank of Nova Scotia was led by James Archer, with assistance from Ron Schwass and Steven Kim (securities), Stephanie Haladner (corporate), and Gabrielle Richards (tax). The Torys team that acted for the underwriting syndicate (which was led by Scotia Capital and included CIBC World Markets, RBC Dominion Securities Inc., TD Securities, National Bank Financial, BMO Nesbitt Burns and Merrill Lynch Canada Inc.) included Simon Knowling, Michael Feldman and Michael Choiselat, and John Unger (tax).