Essent increases its credit facility, adds option for additional increase

Essent Group, which provides private mortgage insurance for single-family mortgage loans in the US through its subsidiary Essent Guaranty, has amended its credit facility to increase its total size to $625 million, from $500 million.

Essent now has an option to increase the credit facility to $775 million.

The terms of the facility have also been changed, with an increased revolving credit facility to $300 million, from $275 million. An additional $100 million non-amortising term loan has been added.

The revolving credit facility and term loans will mature concurrently in October 2023.

The proceeds of the additional term loan were used 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.

Mark Casale, chairman and chief executive officer at Essent, said: “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.”

JPMorgan Chase, BofA Securities and RBC Capital Markets acted as joint lead arrangers and joint bookrunners for the credit facility. Associated Bank, Citizens Bank, KeyBanc Capital Markets and US Bank National Association also acted as joint lead arrangers.