> Warren Buffett Blog: Home Capital pays back Warren Buffett

Thursday, August 3, 2017

Home Capital pays back Warren Buffett

Home Capital Group Inc. said it repaid the balance on a US $1.6 billion credit line from Warren Buffett’s Berkshire Hathaway Inc. after the Canadian mortgage lender sold assets.

Home Capital received C$662 million from its previously announced agreement to sell some commercial mortgages, the Toronto-based firm said. The company has received about C$1.13 billion in total on the sale and discharges of commercial mortgages tied to its initiatives to increase liquidity.

Home Capital said it will continue to pay a 1 percent standby fee on undrawn funds until the Berkshire facility matures one year from the initial funding date. Buffett last month agreed to buy C$400 million in shares and provide the credit line after the alternative mortgage lender faced a run on deposits.