Home Capital shares surge after OSC settlement, talk of financing deal

Shares in alternative lender Home Capital surged on Thursday after media reports suggested the company was close to a deal for new financing following the end of an OSC investigation.

Home Capital gained12.7 per cent to close at $13.67 on Thursday after a report from Reuters suggested the company was closeto securinga loan of about $2 billion to replace a costly emergency credit line it agreed to in April.

"Home Capital is aware of recent media reports concerning a potential refinancing transaction," the company said in a release.

"The Company has previously indicated that it is pursuing additional financing and strategic options. As a general policy, the Company does not comment on speculation and rumours. The Company will inform the market as required but does not intend to make any further comment or release regarding speculation."

The developments came a day after Home Capital closed the book on an OSC investigation into the company, settling allegations that it misled investors by not immediately disclosing information it uncovered about falsified loan applications for around $30 million.

Under that deal, three former execs will pay fines and penalties and be banned for acting as a director or officer of a public company for a period of time.