TORONTO, Feb. 20, 2020 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) announced that it today completed its previously announced offering (the "Offering") of $300 million of 2.955% debentures due March 1, 2027 (the "Debentures"). The offering was made through a syndicate of agents led by CIBC World Markets Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc. and TD Securities Inc., and including National Bank Financial Inc.
The Company also announced today that it will redeem all of its outstanding 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 March 23, 2020 (the "Redemption Date") the outstanding $175 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 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 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. 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 December 31, 2019, the Company had $6.8 billion total assets and $3.9 billion shareholders' equity. Find out more at www.genworth.ca.
Cautionary Note Regarding Forward-Looking 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, the Company's plans, objectives, expectations and intentions, including the Company's expectations regarding 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.
SOURCE Genworth MI Canada