Genworth MI Canada Inc. to Issue $160 Million Senior Unsecured Debentures
/THIS PRESS RELEASE MAY NOT BE PUBLISHED, DISTRIBUTED OR TRANSMITTED IN OR INTO THE UNITED STATES OR OVER UNITED STATES WIRE OR NEWS SERVICES./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, March 26, 2014 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) announced today that it has agreed to issue $160 million of debentures (the "Debentures"). The Debentures will be senior direct and unsecured obligations of the Company and will rank equally with all other unsecured and unsubordinated indebtedness of the Company. The Debentures are to be offered by a syndicate of agents led by Scotiabank, BMO Capital Markets, RBC Capital Markets, and TD Securities Inc.
The Debentures will bear interest at a fixed annual rate of 4.242% payable semi-annually in equal installments in arrears on April 1 and October 1 in each year commencing on October 1, 2014 until maturity on April 1, 2024. The Debentures have been assigned a preliminary rating of A- by Standard & Poor's and a preliminary rating of AA (low) by DBRS. The Company intends to use the net proceeds of the offering primarily to reduce existing indebtedness.
The Debentures are expected to be issued on April 1, 2014. Details of the offering will be set out in a prospectus supplement to the Company's short form base shelf prospectus dated May 31, 2012, 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 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 almost 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, 2013, Genworth Canada, had $5.6 billion total assets and $3.0 billion shareholders' equity. Find out more at www.genworth.ca.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements. These forward-looking statements include, but are not limited to, the Company's plans, objectives, expectations and intentions, including the Company's expectations regarding future developments in connection with the offering of Debentures and the Company's intention reduce existing indebtedness, and other statements contained in this release that are not historical facts. These statements may be identified by their use of words such as "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", or similar expressions, as they relate to the Company are intended to identify forward-looking statements. These statements are inherently subject to significant risks, uncertainties and changes in circumstances, many of which are beyond the Company's control. The Company's actual results may differ materially from those expressed or implied by such forward-looking statements, including as a result of changes in global, political, economic, business, competitive, market and regulatory factors, and the other risks described in the Company's Annual Information Form dated March 17, 2014. Other than as required by applicable laws, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
SOURCE Genworth MI CanadaFor further information: Investors -- Samantha Cheung, 905-287-5482 firstname.lastname@example.org; Media -- Lisa Azzuolo, 905-287-5520 email@example.com