Genworth Announces Launch of Syndication of $450 Million Senior Secured Term Loan

Insurance Weekly News

By a News Reporter-Staff News Editor at Insurance Weekly News -- Genworth Financial, Inc. (NYSE: GNW) announced that it has commenced the syndication of a proposed senior secured term loan in an aggregate principal amount of up to $450 million (the "Term Loan").

The proceeds of the Term Loan are expected to be used, together with cash on hand, to repay existing indebtedness and transaction fees and expenses, and could be used to pay Genworth's 6.515% senior unsecured notes due May 2018 (the "2018 Notes"). The closing of the Term Loan, which is currently anticipated to occur in early March 2018, is subject to negotiation and execution of definitive loan documents and satisfaction of certain closing conditions. As currently contemplated, the security package for the Term Loan would include a pledge of the publicly listed shares of Genworth's Canadian mortgage insurance subsidiary, Genworth MI Canada Inc., held by Genworth Financial International Holdings, LLC, a wholly owned subsidiary of Genworth. In addition, China Oceanwide Holdings Group Co., Ltd. ("Oceanwide) has expressed an interest in participating in the Term Loan. Genworth and Oceanwide are in discussions to determine Oceanwide's potential involvement in the secured financing. There can be no assurance that syndication of the Term Loan will be successful, that Genworth will be able to obtain the Term Loan on the terms described above or on terms satisfactory to Genworth or that Genworth will enter into the Term Loan.

Goldman Sachs Bank USA and JPMorgan Chase Bank, N.A. will act as joint lead arrangers and joint book runners for the Term Loan.

This press release does not constitute a notice of redemption under the indenture governing the 2018 Notes nor an offer to tender for, or purchase, any 2018 Notes or any other security.

Keywords for this news article include: Business, Genworth Financial Inc.