Essent closes $500m note offering

Bermuda-based Essent Group has closed two transactions that give it access to approximately $1 billion in capital.

Mortgage re/insurer Essent said its public offering of $500 million aggregate principal amount of senior unsecured notes closed on July 1 resulting in $495.3 million of net proceeds while it also entered into a five-year, $500 million unsecured revolving credit facility effective July 1, 2024 with a syndicate of banks. The revolving credit facility amends and replaces the company’s previous $400 million secured revolving credit facility.

Essent said the notes will pay interest semi-annually at a rate of 6.250% per year and will mature on July 1, 2029. Approximately $425 million of the net proceeds from the offering were used to repay all of the borrowings outstanding under the term loan portion of the company’s prior credit facility, with the remainder available for working capital and general corporate purposes.

“We are very pleased with our ability to further diversify our sources of capital with access to approximately $1 billion through the recent notes offering and amended credit facility,” said Mark Casale, chairman and chief executive officer. “These actions further enhance our already strong capital and liquidity position while adding to our financial flexibility. At the same time, we continue to manage the balance sheet conservatively, and maintain the lowest debt leverage in the mortgage insurance industry.”

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