Sagen MI Canada Inc. to Issue $300 Million of Unsecured Debentures and Announces Redemption on September 25, 2026 of its Outstanding 2.955% Debentures due March 1, 2027

/THIS PRESS RELEASE MAY NOT BE PUBLISHED, DISTRIBUTED OR TRANSMITTED IN OR INTO THE UNITED STATES OR OVER UNITED STATES WIRE OR NEWS SERVICES./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, Sept. 15, 2026 /CNW/ -- Sagen MI Canada Inc. (the "Company" or "Sagen") (TSX: MIC.PR.A) announced today that it has agreed to issue $300 million of debentures (the "Debentures") by way of private placement under applicable Canadian securities laws. The Debentures will be senior 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 BMO Capital Markets and Scotiabank and including CIBC World Markets, RBC Capital Markets, TD Securities and National Bank Financial.

The Debentures will bear interest at a fixed annual rate of 4.947%, payable semi-annually in equal instalments in arrears on March 22 and September 22 in each year, commencing on March 22, 2027, until maturity on September 22, 2033, unless redeemed at an earlier date. The Debentures are expected to be assigned a rating of A (high) by Morningstar DBRS and a rating of A- by S&P. The Company intends to use the net proceeds of the offering for the potential redemption, refinancing, and repayment of the Company's outstanding 2.955% debentures due March 1, 2027 and any other outstanding indebtedness, and for liquidity, capital management and general corporate purposes. The Debentures are expected to be issued on September 22, 2026.

This press release does not constitute an offer to sell or a solicitation to buy securities in any jurisdiction. 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.

The Company also announced today that it will redeem all of its outstanding 2.955% debentures due March 1, 2027 (the "Redeemed Debentures"). The Company has given notice to the registered holder of the Redeemed Debentures that, conditional upon closing of the offering of Debentures, it will redeem on September 25, 2026 (the "Redemption Date") the outstanding $282 million aggregate principal amount of Redeemed Debentures.

Pursuant to the terms of the trust indenture governing the Redeemed Debentures, the Redeemed Debentures will be redeemed on the Redemption Date at a price equal to the greater of the Canada Yield Price and par, together in each case with accrued and unpaid interest to the Redemption Date.

The Canada Yield Price, with respect to any redemption date, means a price which would provide a yield from the Redemption Date to January 1, 2027 equal to the Government of Canada Yield, plus 38.5 basis points (0.385%), compounded semi-annually and calculated on the day that is three business days prior to the Redemption Date.

About Sagen MI Canada Inc.

Sagen MI Canada Inc., operating through its wholly owned subsidiary, Sagen Mortgage Insurance Company Canada (doing business as Sagen^®), 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. Sagen differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For more than three decades, the Company has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at June 30, 2026, the Company had $7.0 billion total assets and $2.8 billion shareholders' equity. Find out more at www.sagen.ca.

Caution regarding forward-looking information and statements

Certain statements made in this news release contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). When used in this news 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, the Company's intention to reduce existing indebtedness and its intention to redeem the Redeemed Debentures, 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.

For further information:

Investors – Amit Chalam, 905-287-5393 [email protected]
Media – Remco Appel, 647-880-0724 [email protected]

Sagen MI Canada and Sagen are trademarks owned by Sagen MI Canada Inc.

SOURCE Sagen MI Canada Inc.