Input Capital Corp. Completes Second Credit Agreement for Mortgage Stream Financing
REGINA, Oct. 3, 2018 /CNW/ - Input Capital Corp. ("Input" or the "Company") (TSX Venture: INP) (US: INPCF) is pleased to announce that it has completed its second credit agreement for mortgage stream financing. This one is with HSBC Bank Canada ("the "Bank").
The HSBC credit facility (the "Facility") has been created via an amendment to Input's existing revolving credit facility with the Bank, and provides for up to $10 million in a revolving debt facility secured against the mortgages underlying the mortgage streams Input has with its clients. The Facility finances up to 100% of the original mortgage principal at bank prime + 1.0% or using Banker's Acceptance to lock in interest rates for up to 365 days at a time.
By allowing Input to margin its mortgage streams, this Facility reduces Input's capital required to originate mortgage streams, significantly improving returns on equity while enhancing Input's ability to build a larger book of mortgage, capital and marketing streams. Due to its revolving nature, this Facility can be used again and again as an internal mortgage warehouse facility to build mortgage inventory for sale or refinancing.
Doug Emsley, President & CEO of Input, said: "This facility expands our ability to fund mortgages and furthers the establishment of a template for the kinds of mortgage financing facilities we seek to complete with our existing banks and/or other financial institutions. We will continue to grow the amount of capital available to fund our mortgage stream business by expanding and/or replicating our two mortgages facilities many times over."
Input is an agriculture commodity streaming company with a focus on canola, the largest and most profitable crop in Canadian agriculture. The Company has developed several flexible and competitive forms of financing which help western Canadian canola farmers solve working capital, mortgage finance and canola marketing challenges and improve the financial position of their farms. Under a streaming contract, Input provides capital in exchange for a stream of canola via multi-year fixed-volume canola purchase contracts. To a farmer, Input is like a virtual grain company, buying canola and providing financial solutions. To canola buyers, Input is like a large virtual farm which produces and sells canola over a large geographically diverse footprint, but does not own the land, or equipment or operate the farm. In production terms, Input is the largest canola farm in the world.
Input plans to continue to grow and diversify its low cost canola production profile by entering into streaming contracts with canola farmers across western Canada. Input is focused on farmers with quality production profiles, excellent upside yield potential, and strong management teams.
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Forward Looking Statements
This release includes forward-looking statements regarding Input and its business. Such statements are based on the current expectations and views of future events of Input's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Input, including risks regarding the agricultural industry, economic factors and the equity markets generally and many other factors beyond the control of Input. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Input undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Input Capital Corp.
INPUT CAPITAL CORP.
300 – 1914 Hamilton Street
Phone (306) 347-3006
Fax (306) 352-4110