June 21 (Reuters) - Home Capital Group Inc HCG.TO :
* Home Capital reaches agreement with Berkshire Hathaway (NYSE:BRKa) for investment of up to C$400 million in common equity and provision of new C$2 billion credit facility
* Proceeds from common equity investment provide additional liquidity and capital in near term
* Home Capital Group Inc - replacement of existing emergency credit facility on improved terms, providing company with a lower cost backstop facility
* Says approximately C$247 million of C$400 million equity investment is subject to shareholder approval
* Home Capital Group - Berkshire Hathaway to indirectly acquire C$400 million of Co's common shares on private placement basis
* Berkshire Hathaway to provide a new c$2 billion line of credit facility to home trust company
* Home Capital Group-board determined that Berkshire transaction provides current shareholders with best available combination of transaction certainty
* Expects to have sufficient liquidity over coming months to repay all amounts outstanding under new credit agreement
* Home Capital Group Inc - Berkshire will not be granted any rights to nominate directors of company or any governance rights as an equity holder
* Home Capital - Berkshire, through unit, agreed to make initial investment of C$153,225,739 to buy 16,044,580 common shares on a private placement basis
* Says each common share in initial investment will be issued at a price of C$9.55 per common share
* Home Capital-Berkshire, through unit, agreed to make additional investment of C$246,774,261 to buy 23,955,420 common shares on private placement basis
* Says each common share in additional investment will be issued at a price of approximately C$10.30 per common share
* Home capital-co will draw on new credit agreement to repay all amounts outstanding under existing credit agreement, existing credit agreement will be terminated Source text for Eikon: ID:nCNWG04qta Further company coverage: HCG.TO