/THIS PRESS RELEASE MAY NOT BE PUBLISHED, DISTRIBUTED OR TRANSMITTED IN OR INTO THE UNITED STATES OR OVER UNITED STATES WIRE OR NEWS SERVICES./
TORONTO, Feb. 13, 2020 /CNW/ – Genworth MI Canada Inc. (the “Company”) (TSX: MIC) announced today that it has agreed to issue $300,000,000 million of debentures (the “Debentures”). The Debentures will be direct, unsecured and unsubordinated obligations of the Company and will rank equally and rateably with all other unsecured and unsubordinated indebtedness of the Company. The Debentures are to be offered by a syndicate of agents led by CIBC World Markets Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc. and TD Securities Inc., and including National Bank Financial Inc.
The Debentures will bear interest at a fixed annual rate of 2.955% payable semi-annually in equal instalments in arrears on March 1 and September 1 in each year until maturity on March 1, 2027. Notwithstanding the foregoing, the first interest payment will include accrued interest from and including February 20, 2020 to but excluding September 1, 2020. The Debentures are expected to be assigned a rating of A (high) by DBRS and a rating of BBB+ by S&P. The Company intends to use the net proceeds of the Offering for the potential redemption, refinancing, and repayment of its outstanding 5.68% debentures due June 15, 2020 and any other outstanding indebtedness, and for liquidity and capital management purposes.
The Debentures are expected to be issued on February 20, 2020. Details of the offering will be set out in a prospectus supplement to the Company’s short form base shelf prospectus dated October 2, 2018, which the Company intends to file in Canada and which will be available on SEDAR at www.sedar.com.
The Debentures have not been and will not be registered in the United States under the Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States or to U.S. Persons absent registration or applicable exemption from the registration requirement of such Act. This press release does not constitute an offer to sell or a solicitation to buy the Debentures in the United States.
About Genworth MI Canada Inc.
Genworth MI Canada Inc. (TSX: MIC) through its subsidiary, Genworth Financial Mortgage Insurance Company Canada (“Genworth Canada”), is the largest private sector residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. Genworth Canada differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For more than two decades, Genworth Canada has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at December 31, 2019, the Company had $6.8 billion total assets and $3.9 billion shareholders’ equity. Find out more at www.genworth.ca.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made in this press release contain forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). When used in this press release, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions, as they relate to the Company are intended to identify forward-looking statements. Specific forward-looking statements in this document include, but are not limited to, statements with respect to the Company’s expectations regarding future developments in connection with the offering of Debentures and the Company’s intention to reduce existing indebtedness, and other statements contained in this release that are not historical facts.
Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. The Company cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. The Company does not undertake to update any forward-looking statements, except to the extent required by applicable securities laws.
Contact Information:
Investors: Aaron Williams, 905-287-5504 or aaron.williams@genworth.com
Media: Susan Carter, 905-287-5520 or susan.carter@genworth.com
SOURCE Genworth MI Canada
View original content: http://www.newswire.ca/en/releases/archive/February2020/13/c3615.html