Home Equity Completes IPO

On August 8, 2002, Home Equity Income Trust (HOMEQ), completed an initial public offering of units for gross proceeds of $86.7 million and a private placement of units to Canadian Home Income Plan (CHIP) for proceeds of $9.6 million. HOMEQ was established by CHIP, the only national provider of reverse mortgages in Canada. HOMEQ used the proceeds of the offering to invest in the existing securitization partnerships and to reduce indebtedness on a consolidated basis. HOMEQ is the vehicle through which CHIP will now finance its reverse mortgage origination business. HOMEQ has established a commercial paper programme through a wholly owned trust, CHIP Mortgage Trust. All mortgage origination, mortgage servicing and management functions for HOMEQ will be performed by CHIP or its subsidiaries.

Torys LLP acted for HOMEQ, with a team that included Michael Feldman, Melissa LaFlair, Cameron Koziskie, Suh Kim, GuyLaine Charles, Michael Barrett, Karen Burke and Nathan Verhagen (corporate), Lucia ten Kortenaar, Tim Rorabeck and Craig Burley (tax), Carolyn Naiman (competition) and Robin Coster (technology).

The underwriting syndicate was led by RBC Capital Markets Inc., and included National Bank Financial Inc., TD Securities Inc. and Raymond James Ltd. Osler, Hoskin & Harcourt LLP acted for the underwriting syndicate, with a team consisting of Christopher Murray, Michal Pomotov, Emmanuel Pressman and Dana Easthope (corporate), Jack Silverson and Judith Harris (tax) and Phil Heath and Gina Caldarelli (commercial paper programme).