HAMILTON, Bermuda--(BUSINESS WIRE)--
Essent Group Ltd. (NYSE: ESNT) announced today that on April 19, 2016,
it entered into a three-year, $200 million revolving credit facility
(the “Facility”). Borrowings under the Facility may be used for working
capital and general corporate purposes, including, without limitation,
capital contributions to Essent’s insurance and reinsurance subsidiaries.
“This credit facility enhances our financial flexibility as we continue
to grow our company,” said Mark Casale, Chairman and Chief Executive
Officer. “Furthermore, we are very pleased with the terms of the credit
facility, which we believe are reflective of Essent’s strong financial
profile.”
Borrowings under the Facility will accrue interest at a floating rate
tied to a standard short-term borrowing index, selected at the company’s
option, plus an applicable margin. On the closing date, the minimum
interest rate for any borrowings would have been 1-Month LIBOR plus
2.0%. Additional details related to the terms and conditions of the
Facility are included in the credit agreement, which will be filed with
the Securities Exchange Commission as an exhibit to a Current Report on
Form 8-K. The obligations under the Facility are secured by certain
assets of Essent Group Ltd., excluding the stock and assets of its
insurance and reinsurance subsidiaries. As of the date of this
announcement, no amounts have been borrowed under the Facility.
J.P. Morgan and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted
as joint lead arrangers and joint book runners.
About the Company
Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding company
(collectively with its subsidiaries, “Essent”) which, through its
wholly-owned subsidiary Essent Guaranty, Inc., offers private mortgage
insurance for single-family mortgage loans in the United States. Essent
provides private capital to mitigate mortgage credit risk, allowing
lenders to make additional mortgage financing available to prospective
homeowners. Headquartered in Radnor, Pennsylvania, Essent Guaranty, Inc.
is licensed to write mortgage insurance in all 50 states and the
District of Columbia, and is approved by Fannie Mae and Freddie Mac.
Essent also offers mortgage-related insurance and reinsurance through
its Bermuda-based subsidiary, Essent Reinsurance Ltd. Additional
information regarding Essent may be found at www.essentgroup.com
and www.essent.us.
Source: Essent Group Ltd.
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Source: Essent Group Ltd.