Home Equity Income Trust
TSX : HEQ.UN

September 29, 2005 15:58 ET

Home Equity Income Trust Announces Equity Issuance of $15,015,000

TORONTO, ONTARIO--(CCNMatthews - Sept. 29, 2005) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Home Equity Income Trust (TSX:HEQ.UN) today announced that that it has agreed to sell 1,100,000 Units for $13.65 per Unit for aggregate gross proceeds of $15,015,000 to a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis.

HOMEQ will, within the next two days, file with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, a prospectus supplement to the Shelf Prospectus filed on June 22, 2004, relating to the issuance of the Units. Closing of the offering is expected to take place on or about October 11, 2005.

The issuance of new Units is in accordance with the growth of the Trust since its Initial Public Offering and proceeds of the sale of the Units will be primarily used to fund originations of new mortgages.

This press release is not an offer of securities for sale in the United States. The securities have not been and will not be registered under U.S. securities laws and may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from registration.

Forward Looking Statements

This document may contain certain forward-looking information and statements concerning the Trust's operations, performance, and financial condition, including, in particular, the forecast of cash distributions and the likelihood of the Trust's success in developing and expanding its business. These statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Trust. Actual results may differ materially from those expressed or implied by such forward-looking statements.

About Home Equity Income Trust

Home Equity Income Trust (HOMEQ) provides unitholders with stable monthly cash distributions from a portfolio of reverse mortgages originated by its wholly owned subsidiary Canadian Home Income Plan Corporation. HOMEQ's units are rated SR-2 by Standard and Poor's, which assigns this rating to Trusts that have "a very high level of cash distribution stability relative to other rated Canadian income funds." As of June 30, 2005, the portfolio generating cash returns to the Trust comprised approximately 6,200 reverse mortgages with an accrued value of more than $510.2 million, secured by residential properties across Canada worth approximately $1.4 billion. CHIP (www.chip.ca), has been the main underwriter of reverse mortgages in Canada since pioneering the concept in 1986.

HOMEQ's units trade on the Toronto Stock Exchange under the symbol HEQ.UN. Additional information on HOMEQ, including annual and quarterly reports and the Trust's distribution reinvestment plan, can be viewed at www.homeq.ca.

Contact Information

  • Home Equity Income Trust
    Steven Ranson
    President and Chief Executive Officer
    (416) 413-4663
    sranson@homeq.ca
    or
    Home Equity Income Trust
    Gary Krikler
    Senior Vice President and Chief Financial Officer
    (416) 413-4679
    gkrikler@homeq.ca