Essent Group Ltd. Announces Amended and Extended $625 Million Credit Facility
Essent Group Ltd. (NYSE: ESNT) has announced an amendment to its credit facility, increasing the total from $500 million to $625 million. Key changes include an increase in the revolving credit facility from $275 million to $300 million and an additional $100 million non-amortizing term loan, both maturing in October 2023. The funds will be used for working capital and general corporate purposes. The facility will accrue interest based on a floating rate tied to a short-term borrowing index, starting at 1-Month LIBOR plus 2.0%. The facility is secured by certain assets of Essent, excluding its insurance subsidiaries.
- Increased credit facility from $500 million to $625 million enhances liquidity.
- Additional $100 million term loan improves financial flexibility.
- Amended terms reflect Essent's strong financial profile.
- None.
HAMILTON, Bermuda--(BUSINESS WIRE)--Essent Group Ltd. (NYSE: ESNT) today announced that it has amended its credit facility (the “Credit Facility”) to increase the total facility from
-
An increase in the revolving credit facility from
$275 million to$300 million ; -
The issuance of an additional
$100 million non-amortizing term loan; - The revolving credit facility and term loans maturing concurrently in October 2023;
-
An option to increase the Credit Facility to
$775 million .
The proceeds of the additional term loan issued, as well as cash at our holding company, were used at closing to pay down all amounts drawn under the revolving credit facility. Borrowings under the Credit Facility are available for working capital and general corporate purposes, including, without limitation, capital contributions to Essent’s insurance and reinsurance subsidiaries.
“We are very pleased with the amended terms of the facility, which we believe are reflective of Essent’s strong financial profile,” said Mark Casale, Chairman and Chief Executive Officer. “The increase of the commitment under the credit facility, and the extension of the maturity to October 2023, further enhances our already strong capital and liquidity position and adds to our financial flexibility.”
Borrowings under the revolving credit facility and term loan 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 was 1-Month LIBOR plus
JPMorgan Chase Bank, N.A., BofA Securities, Inc., and RBC Capital Markets acted as joint lead arrangers and joint bookrunners for the Credit Facility. Associated Bank, N.A., Citizens Bank, N.A., KeyBanc Capital Markets Inc., and U.S. Bank National Association also acted as joint lead arrangers.
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, reinsurance and advisory services through its Bermuda-based subsidiary, Essent Reinsurance Ltd. Essent is committed to supporting environmental, social and governance (“ESG”) initiatives that are relevant to the company and align with the companywide dedication to responsible corporate citizenship that positively impacts the community and people served. Additional information regarding Essent may be found at www.essentgroup.com and www.essent.us.
Source: Essent Group Ltd.
