The Canadian market has seen some action lately with deals closing and transactions on the way to completion.
Canadian Home Income Plan (CHIP), which recently filed a long-term prospectus, is set to come to market with a deal that will likely price the week of July 24 and close the week of July 31.
The $118 million deal is backed by reverse mortgages and done through the company's CHIP Four Term Trust. It is separated into two tranches: a five-year fixed-rate tranche worth $80 million and a five-year floating-rate tranche worth $38 million. Scotia Capital is leading the offering with National Bank Financial and TD Securities as co-leads. Both tranches are rated triple-A by Dominion Bond Rating Service and Standard and Poor's Ratings Services.
MBNA Canada Bank priced a $400 million credit card-backed deal, which was led by RBC Dominion Securities, last Tuesday. The transaction was done through the company's Gloucester Credit Card Trust and was separated into two tranches. The C$338 million, triple-A rated class A notes priced at 54 basis points over Canada bonds of equivalent term. The deal also included $62 million worth of triple-B rated collateral notes.
Meanwhile, Caisse de depot et placement du Quebec and Canadian Tire Corp. Ltd. announced the completion of their respective deals last week. The Caisse deal, which was backed by commercial mortgage-backed securities, was worth $235 million while the Canadian Tire deal, which was backed by credit-card receivables, amounted to $204 million.
Sources say that Capital One Financial Services Canada is currently adding additional assets to as well as planning to sell additional interest through its Capital One Credit Card Master Trust. Though the timing of the sale is unsure, it is expected in the near term. It is not known yet what form the sale would take, but sources say it may take the form of an asset-backed issuance. The trust has the capacity to either issue directly into the market or sell into multi-seller conduits.