Bermuda-based Essent Group, which offers private mortgage insurance for single-family mortgage loans in the US, has started a public offering in which it is opening up five million common shares for sale.
The underwriter will have the option to purchase up to an aggregate of 750,000 additional common shares from the company, with the offering being underwritten by Barclays.
Essent Group said that it intends to use the net proceeds from the offering for general corporate purposes, which may include capital contributions to support the growth of the company’s insurance subsidiaries, and also reducing borrowings owed by the company under that certain amended and restated credit facility entered into by the company and certain of its affiliates.
It added that the common shares are being offered pursuant to an effective shelf registration statement (including a base prospectus) under the Securities Act of 1933, as amended, that has been filed with the US Securities and Exchange Commission.
In May of this year Essent announced that it was amending its credit facility to increase the total facility from $200 million to $375 million.
Essent, Group, Bermuda-based, public, offering