Callable (by investor) every 6 months. Repayment after call is on an “as available” basis.
Redeemable (by BCMC) every 6 months. Redemptions by the company are paid immediately. Builders Capital will not exercise a redemption request if it does not have the capital to payout.
Interest compounds semi-annually.
Interest is paid every 6 months. Bondholders can elect to reinvest their interest.
Term to maturity is 5 years.
Minimum bond size is $250,000.00.
Bondholders must qualify to invest under the exempt market rules.
Arrears and losses have been small through active management by the portfolio managers.
Quarterly dividend payments to the MIC Class A shareholders have never been missed and never been reduced.
Over the last five years, there has been more demand than supply for Builders Capital funds.
As a public company, BCMC offers open disclosure, consistent, third-party
oversight via audits and operational transactional history on a quarterly basis.
Mortgages are currently issued at a fixed rate of 12.95%. After expenses, investors can reasonably expect a yield of 11%. Historic yields can be found online (www.sedar.ca ) and in Appendix A.
Up to $50 million in participating bonds will be issued with a minimum of $250,000.00 per issuance. Bonds will have a yield equal to the net return of the mortgage portfolio which is anticipated to be between 11% and 12%. Bondholders must qualify under exempt market rules to participate.
Borrowers will be charged a fee of 3.5% of the authorized mortgage amount. This fee revenue will be split between BCMC at 28% and the manager (Builders Capital Management) at 72%. The 28% essentially equates to 1% of the mortgage amount.
