CHIP Mortgage Trust Closes $175M Sale of Notes

On February 1, 2011, CHIP Mortgage Trust (“CHIP”), a subsidiary of HOMEQ Corporation, closed the sale of $175 million of senior medium term notes (the “Notes”). The dealer syndicate for the sale was led by RBC Capital Markets and included Scotia Capital Inc. and CIBC World Markets Inc. The Notes have an expected final payment date of February 1, 2016.

CHIP filed, with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, a pricing supplement to the short form base shelf prospectus of CHIP dated June 1, 2010. Under the prospectus, CHIP may issue up to a total of $750 million of medium term notes from time to time over the 25 months following the date of the prospectus.

CHIP will use the proceeds of this issue to redeem the remaining $136.8 million of Series 2008-1 Notes prior to the expected final payment date of May 16, 2011. Previously in the quarter CHIP redeemed $25 million of these 2008-1 Notes. The balance of the proceeds of the issue will be used to repay a portion of the Series 2007-3 Notes on May 2, 2011.

Fasken Martineau DuMoulin LLP was advisor to CHIP with a team that included Richard Steinberg and Alex Nikolic (securities) and Mitchell Thaw (tax).

The dealers were advised by Osler, Hoskin & Harcourt LLP with a team that included Christopher Murray and Frank Reda (securities).


Alex Nikolic Mitchell L. Thaw Christopher S. Murray Richard J. Steinberg Frank Reda