TORONTO, May 9, 2019 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) today announced that holders of its 4.242% debentures due April 1, 2024 (the "Debentures") have approved an amendment to the third series supplement (the "Supplemental Indenture") governing the Debentures. The amendment increases the aggregate principal amount of Debentures that may be issued under the Supplemental Indenture from $160 million to $300 million, thereby providing the Company with the right, but not the obligation, to offer for issuance up to an additional $140 million principal amount of Debentures, which additional Debentures, if and when issued, would form part of the same series as the existing Debentures.
Holders of Debentures who validly delivered a consent form prior to the expiry time, as set out in the consent solicitation statement of the Company dated April 22, 2019 (the "Consent Solicitation Statement"), where such consent form was accepted by the Company, are eligible to receive a fee equal to $1.00 per $1,000 principal amount of Debentures. In the case of any Debentures registered in the name of CDS, any such payments will be made to the relevant intermediaries (such as a bank, trust company, securities dealer or broker, or trustee or other intermediary) who are participants in the CDS clearing system. CDS participants shall be responsible for the further distribution of the fee amongst the applicable consenting beneficial holders. Beneficial holders should contact their intermediaries with any questions relating to consent fees.
The Company also announced today that, following on the successful solicitation of consents, it is considering an offering of Debentures under its base shelf prospectus.
If a successful offering is completed, the Company intends to use the net proceeds of the Debenture offering for the potential redemption, refinancing, and repayment of outstanding indebtedness, and for liquidity and capital management purposes. The Company will provide further information as events warrant.
This press release does not constitute an offer to sell or a solicitation to buy securities in any jurisdiction. The securities considered to be offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of a prospectus supplement regarding the securities. The securities 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.
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 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 March 31, 2019 Genworth Canada had $6.9 billion total assets and $4.1 billion total shareholders' equity. Find out more at www.genworth.ca.
Investors – Jonathan Pinto, 905-287-5482 or firstname.lastname@example.org.
Caution regarding forward looking information and 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 payment of consent fees, the consideration of an offering Debentures and the intended use of proceeds from any successful Debenture offering.
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.
SOURCE Genworth MI Canada