Our Toronto and New York offices advised BofA Merrill Lynch as lead placement agent, on a series issuance under the Home Trust Company’s Classic Residential Mortgage-backed Securities (Classic RMBS) Trust program. On February 23, 2022, the Classic RMBS Trust issued an A tranche of notes totalling C$425m that were privately placed with investors in Canada by a syndicate led by BofA Merrill Lynch and co-managed by BMO Capital Markets and RBC Capital Markets. The syndicate also included all of the other major Canadian bank-owned investment dealers. The remaining approximately C$75m of the series 2022-1 notes comprised of the B and Z tranches were taken up by Home Trust. The A tranche is rated AAA(sf) by DBRS and Aaa(sf) by Moody’s.

The Classic RMBS Trust program is an innovative financing program and is Home Trust’s first offering of residential mortgage-backed securities.  More importantly, it is one of only a few private residential mortgage-backed securities programs in the Canadian market. As such, it includes some unique, innovative structuring elements. It also represents the first ever private residential mortgage-backed securities program in the Canadian market designed to offer notes to investors both in Canada and the United States.