/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TORONTO, Oct. 22, 2012 /CNW/ - Equitable Group Inc. ("Equitable" or the
"Company") today announced that it has closed its previously announced
underwritten private placement offering (the "Offering") of $65 million
of 5.399% debentures due October 23, 2017 (the "Series 10 Debentures").
The Offering was conducted by a syndicate of underwriters led by TD
Securities Inc. and RBC Dominion Securities Inc., and which included
GMP Securities L.P., BMO Nesbitt Burns Inc. and CIBC World Markets Inc.
The gross proceeds of the offering are being used by the Company to
acquire debentures from its wholly owned subsidiary, The Equitable
Trust Company (the "Series 10 Trustco Debentures"). It is anticipated
that the Series 10 Trustco Debentures will qualify as Tier 2B capital
of Equitable Trust (subject to the receipt of approval of the
Superintendent of Financial Institutions Canada). Equitable Trust
intends to use the proceeds to fund upcoming redemptions of its
existing subordinated debt (subject to the prior approval of the
Superintendent of Financial Institutions Canada) and for general
corporate purposes, including the expansion of its business. The
Company plans to use the proceeds received from Equitable Trust on the
redemption of certain of Equitable Trust's subordinated debentures to
fully repay an outstanding $12,500,000 bank term loan prior to January
31, 2013.
ABOUT EQUITABLE GROUP INC.
Equitable Group Inc. is a niche mortgage lender. Its primary business is
first charge mortgage financing, which it offers through its
wholly-owned subsidiary, The Equitable Trust Company. Founded in 1970,
Equitable Trust is a federally incorporated trust company. It actively
originates mortgages across Canada. The Company serves single family,
small and large commercial borrowers and their mortgage advisors. It
also serves the investing public across all Canadian provinces and
territories as a provider of insured Guaranteed Investment
Certificates. Equitable Group's common shares and Series 1 preferred
shares are traded on the Toronto Stock Exchange under the symbols ETC
and ETC.PR.A respectively. Visit the Company on-line at www.equitabletrust.com and click on Investor Relations.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an applicable exemption from
the registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall there
be any sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements made by the Company in this news release, in other filings
with Canadian securities regulators and in other communications include
forward-looking statements within the meaning of applicable securities
laws ("forward-looking statements"). These statements include, but are
not limited to, statements about the Company's objectives, strategies
and initiatives, financial result expectations and other statements
made herein, whether with respect to the Company's businesses or the
Canadian economy. Generally, forward-looking statements can be
identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"planned", "estimates", "forecasts", "intends", "anticipates" or "does
not anticipate", "it is anticipated", or "believes", or variations of
such words and phrases which state that certain actions, events or
results "may" , "could", "would", "might" or "will be taken", "occur"
or "be achieved." Forward-looking statements are subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, closing of transactions, performance
or achievements of the Company to be materially different from those
expressed or implied by such forward-looking statements, including but
not limited to risks related to capital markets and additional funding
requirements, fluctuating interest rates and general economic
conditions, legislative and regulatory developments, the nature of our
customers and rates of default, and competition as well as those
factors discussed under the heading "Risk Management" in the
Management's Discussion and Analysis and in the Company's documents
filed on SEDAR at www.sedar.com. All material assumptions used in making forward-looking statements are
based on management's knowledge of current business conditions and
expectations of future business conditions and trends, including their
knowledge of the current credit, interest rate and liquidity conditions
affecting the Company and the Canadian economy. Although the Company
believes the assumptions used to make such statements are reasonable at
this time and has attempted to identify in its continuous disclosure
documents important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended. Certain material assumptions are applied by the
Company in making forward-looking statements, including without
limitation, assumptions regarding its continued ability to fund its
mortgage business at current levels, a continuation of the current
level of economic uncertainty that affects real estate market
conditions, continued acceptance of its products in the marketplace, as
well as no material changes in its operating cost structure and the
current tax regime. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements.
The Company does not undertake to update any forward-looking statements
that are contained herein, except in accordance with applicable
securities laws.
SOURCE: Equitable Group Inc.
