Home Capital Group Inc. Files Preliminary Universal Base Shelf Prospectus

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Sept. 20, 2017 /CNW/ - Home Capital Group Inc. ("Home Capital" or "the Company") (TSX: HCG) today announced that it has filed a preliminary short form universal base shelf prospectus with the Securities Commissions in each of the provinces and territories of Canada with the exception of Quebec. When made final, this filing will allow Home Capital to make offerings of up to $750 million of common shares, preferred shares, debt securities, subscription receipts, warrants, share purchase contracts and units (all of the foregoing, collectively, the "Securities") or any combination thereof. When final, the universal base shelf prospectus will be effective for a 25 month period.

The base shelf prospectus will also qualify any secondary offering of common shares by Columbia Insurance Company, a wholly-owned subsidiary of Berkshire Hathaway Inc. ("Berkshire"). As a condition to Berkshire's initial equity investment in Home Capital on June 29, 2017, which resulted in Berkshire holding an approximate 19.99% equity interest in the Company, Berkshire was granted customary registration rights for so long as it holds, in the aggregate, greater than 10% of the number of then-outstanding common shares of Home Capital. Under the terms of the registration rights agreement, the Company is required to file and maintain an effective base shelf prospectus by no later than October 30, 2017.

Home Capital filed this base shelf prospectus to satisfy its obligations under the registration rights agreement and in order to provide the Company with financing flexibility going forward, although Home Capital has no current intention of offering securities from treasury under the base shelf prospectus. The specific terms of any future offering will be established in a prospectus supplement to the base shelf prospectus filed at the time of such offering.

Home Capital cannot predict if, when or in what amounts Berkshire may sell any of its common shares qualified for distribution by the base shelf prospectus, although a demand registration must be for a number of common shares with a market value of at least $50,000,000. Berkshire may also sell its common shares other than pursuant to the prospectus. Berkshire may sell none, some or all of its common shares qualified for distribution by it pursuant to the prospectus.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Please refer to Home Capital's 2016 Annual Report, available on Home Capital's website at www.homecapital.com, and on the Canadian Securities Administrators' website at www.sedar.com, for Home Capital's Caution Regarding Forward-looking Statements.

About Home Capital Group Inc.
Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.

About Berkshire Hathaway Inc.
Berkshire and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services. Common stock of Berkshire is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

A copy of the preliminary shelf prospectus may be obtained from the SEDAR website at www.sedar.com and also may be obtained from the Company by directing a request by email at inquiry.homecapitalgroup@hometrust.ca or by mail at 145 King St. West, Suite 2300, Toronto, Ontario M5H 1J8, telephone 1-416-360-4663.

SOURCE Home Capital Group Inc.