Xceed Mortgage Corporation Announces Clean-up Call of Xceed Mortgage Trust (Series 2007-T2)

    




 TORONTO, July 17, 2012 /CNW/ - Xceed Mortgage Corporation [TSX: XMC] (the "Company"), a Canadian provider of residential mortgages, today  announced it had exercised an optional clean-up call for Xceed Mortgage  Trust Tranche 2007-T2 (the "Trust"), a securitization trust established  by the Company in 2007. 

 Under the terms of the clean-up call, the Company re-purchased remaining  mortgages in the trust in the amount of $3.1 million (net of  provisions).  Additionally, D note holders of the Trust have been  repaid $3.7 million approximately and E note holders have been repaid  $10.7 million approximately using proceeds from the mortgages purchased  by the Company and funds in the cash collateral account of the Trust.  The Trust also returned to the Company remaining collateral deposits of  $4.5 million, $3.1 million of which was used to purchase the mortgages  noted above. 

 The Trust, having repaid all its note holders, as of July 17, 2012, will  no longer have any outstanding public notes and therefore ceases  activities as a public issuer. 

 The Trust is consolidated by the Company and this clean-up call results  in a reversal of an estimated  net deficit consolidated by the Company  of approximately $8.2 million (inclusive of amounts recorded in the  Trust up to and including July 17, 2012) now that the deficit amount  has been deducted on settlement with the junior note holders.  This  reversal will be recorded as income through the Company's Consolidated  Statement of Net Income for the quarter ending July 31, 2012 along with  other amounts and negotiated fees settled as part of the transaction. 

 The Company is finalizing the accounting for the clean-up call in  conjunction with the Company's auditors and therefore amounts noted  above that are expected to impact the Company's July 31, 2012 results  are preliminary estimates.  Additional history regarding the Trust and  its accounting treatment can also be found in prior financial  statements issued by the Company. 

 About Xceed Mortgage 

 Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of  insured residential mortgages that it originates in Canada.  The  company has approximately $0.9 billion of mortgages under  administration.  Xceed's shares are traded on the Toronto Stock  Exchange [TSX: XMC].  To find out more about Xceed Mortgage Corporation, visit our website  at www.xceedmortgage.com. 

 Forward-Looking Statements 

 Forward-looking statements in this document are based on current  expectations that are subject to significant risks and uncertainties.   Actual results might differ materially due to various factors such as  the competitive nature of the mortgage industry, the ability of Xceed  to continue to execute its growth and development strategy, and the  reliance of Xceed on key personnel.  Xceed assumes no obligation to  update these forward-looking statements, or to update the reasons why  actual results could differ from those reflected in these.  Additional  information identifying risks and uncertainties is contained in Xceed's  regulatory filings available on its website and at www.sedar.com. 

Xceed Mortgage Corporation


    

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