Home Capital Agrees with National Energy Corporation on the Early Termination of Financing Arrangements, Including Related Comp

Home Capital Agrees with National Energy Corporation on the Early Termination 
of Financing Arrangements, Including Related Compensation 
TORONTO, June 5, 2014 /CNW/ - Home Capital Group Inc. ("Home Capital") 
(TSX:HCG) announced today that its wholly owned subsidiary, Home Trust Company 
("Home Trust") has agreed with its customer National Energy Corporation 
("National") on the termination and repayment of financing arrangements 
currently totaling approximately $236 million related to National's sales and 
rentals of water heaters. 
Earlier today, National's parent company, Just Energy Group, Inc., announced 
that it has entered into an agreement to sell the shares of National to 
Reliance Comfort Limited Partnership (the "Sale Transaction"). In connection 
with the Sale Transaction, National and Home Trust will terminate their 
financing arrangements. 
The termination and repayment will be effective on closing of the Sale 
Transaction. The Sale Transaction is subject to, among other things, the 
approval of the federal Competition Bureau. The agreement between National and 
Home Trust includes compensation to Home Trust for the early termination of 
the water heater financing arrangements. Home Trust's compensation is expected 
to be in the range of $32 million to $38 million (before tax). This will 
compensate Home Trust for interest that would have been received over the 
original contractual terms of the financing arrangements, which extended over 
a range of periods ending in 2023. Home Trust will continue to provide 
financing to National until closing of the Sale Transaction. 
At closing of the Sale Transaction, National will repay to Home Trust the 
outstanding financing, along with the associated early termination 
compensation, which will be recorded in the consolidated income of Home 
Capital. The amount of the early termination compensation will depend on the 
amounts and remaining contractual terms of the financing arrangements at 
closing of the Sale Transaction.  Following that date, no further interest 
income from National will be recorded by Home Trust. 
About Home Capital and Home Trust 
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 deposits, 
residential and non-residential mortgage lending, securitization of insured 
residential first mortgage products, consumer lending and credit card 
services. Licensed to conduct business across Canada, Home Trust has offices 
in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba. 
Caution Regarding Forward-looking Statements 
This press release contains forward-looking information within the meaning of 
applicable Canadian securities legislation. Please refer to the Home Capital's 
2013 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.

SOURCE  Home Capital Group Inc. 
Gerald M. Soloway, CEO, or Martin Reid, President, 416-360-4663, 
To view this news release in HTML formatting, please use the following URL: 
CO: Home Capital Group Inc.
ST: Ontario
-0- Jun/05/2014 21:00 GMT
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