Builders Capital Announces Third Closing of Participating Bond Offering

Builders Capital Mortgage Corp. is pleased to announce the successful third closing of its previously announced participating bond offering, marking another important milestone in the Company’s ongoing growth strategy.

As outlined in the Company’s April 8, 2024 announcement, the bond offering is designed to raise up to $50 million in gross proceeds through one or more tranches. The proceeds are intended to support Builders Capital’s core mortgage lending operations, specifically the funding and acquisition of short-term residential construction mortgages across Alberta and British Columbia.

In this third tranche, Builders Capital completed a private placement of participating bonds totaling $2.75 million, based on subscriptions from three investors.

Strategic Use of Capital

The net proceeds from the bond offering will be deployed directly into the Company’s mortgage portfolio, strengthening its ability to serve residential builders and developers while expanding its footprint in key Western Canadian markets.

The participating bonds are structured to rank pari passu—on an equal basis—with the Company’s existing shares in terms of both returns and risk, proportional to capital contributed. As a result, the offering does not introduce additional leverage risk for existing shareholders.

Supporting Long-Term Growth

This successful third closing reflects continued investor confidence in Builders Capital’s disciplined lending approach and strong fundamentals. The Company remains focused on prudent capital deployment, risk management, and delivering sustainable returns while supporting residential construction activity in Alberta and British Columbia.

Builders Capital expects to continue advancing its bond offering as part of its broader capital strategy and will provide updates as additional tranches are completed.