TORONTO, May 23, 2019 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) announced today that on May 22, 2019 it completed its previously announced offering (the "Offering") of $100 million of 4.242% debentures due April 1, 2024 (the "2024 Debentures").
The Offering represents a re-opening of the Company's outstanding 2024 Debentures. The Company issued $160 million aggregate principal amount of the 2024 Debentures on April 1, 2014 and, following closing of the Offering, $260 million aggregate principal amount of the 2024 Debentures is issued and outstanding.
The Company also announced today that it will redeem $100 million principal amount, or approximately 36.4% of the outstanding aggregate principal amount, of the Company's 5.68% debentures due June 15, 2020 (the "Redeemed Debentures"). The Company has given notice to the registered holder of the Redeemed Debentures that it will redeem on June 26, 2019 (the "Redemption Date"), $100 million principal amount of the 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 June 15, 2020 equal to the Government of Canada Yield, plus 58 basis points (0.58%), compounded semi-annually.
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, the Company had $6.9 billion total assets and $4.1 billion total 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 Company's intention to redeem the Redeemed 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 22, 2019. 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