Essent offers 11m shares to ensure liquidity for index funds

29-05-2020

Essent Group has commenced a public offering in which it is offering 11 million common shares. The proceeds will be used for general corporate purposes, which could include capital contributions to its insurance subsidiaries and paying down debt. 

The offering is concurrent with its addition to the S&P MidCap 400 Index, effective from June 1, as some index funds may be required to purchase its shares. The offering is intended to be marketed to these index funds and to other investors, including non-index active investors. 

The underwriters will have the option to purchase up to an aggregate of 1.65 million additional common shares from Essent. 

The offering is being led by joint book-running managers Goldman Sachs and JP Morgan Securities.

 

Essent Group, S&P MidCap 400 Index

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