Home Capital gets new funding to replace Berkshire credit line
(Reuters) - Canadian mortgage lender Home Capital Group Inc (Toronto:HCG.TO - News) said on Wednesday its unit received a two-year C$500 million funding commitment that would replace a C$2 billion credit facility offered by Warren Buffett's Berkshire Hathaway Inc (BRKa.N).
Last year, Buffett took a 20 percent stake in Home Capital and provided a C$2 billion credit facility after investors withdrew more than 90 percent of funds from its high-interest savings accounts.
"This Credit Facility is better aligned with our current liquidity and funding profile and results in a lower aggregate cost than the existing credit facility it is replacing," Chief Financial Officer Brad Kotush said.
(Reporting by Anirban Paul in Bengaluru; Editing by Saumyadeb Chakrabarty)