Genworth MI Canada Inc. announces redemption price for 4.59% Debentures due December 15, 2015

TORONTO, April 28, 2014 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) announced on April 1, 2014 that it would redeem in full the 4.59% debentures  of the Company due December 15, 2015 (the "Debentures") on May 1, 2014 (the "Redemption Date"). Today, the Company has determined the redemption price according to the method and process outlined in the trust indenture governing the Debentures.

The redemption price is equal to the greater of the Canada Yield Price and the principal amount of the Debentures, together in each case with accrued and unpaid interest to the Redemption Date. The Canada Yield Price is a price equal to the price of the Debentures calculated to provide a yield from the Redemption Date to the scheduled maturity date of the Debentures equal to the Government of Canada market yield, plus 52 basis points (0.52%), compounded semi-annually, determined today, the third business day prior to the Redemption Date. The Government of Canada market yield used to calculate the redemption price of the Debentures is the average of the rates calculated by two Canadian investment dealers selected by the Company and approved by the trustee for the Debentures.

The following is the redemption price per C$1,000 principal amount of the Debentures:


Average Government of Canada Yield:

1.043%

Premium:

0.52%

Tender yield:

1.563%

Canada Yield Price per $100 principal amount:

C$104.833

Total Redemption Price:

C$157,249,500.00

Accrued and unpaid interest to May 1, 2014:

C$2,584,232.88

 

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 the redemption of the Debentures 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 Canada

For further information: Investors - Samantha Cheung, 905-287-5482, samantha.cheung@genworth.com; Media - Lisa Azzuolo, 905-287-5520, lisa.azzuolo@genworth.com