Essent Group Ltd. Announces Closing of $557.9 Million Reinsurance Transaction and Related Mortgage Insurance-Linked Notes
June 24 2021 - 8:00AM
Business Wire
Essent Group Ltd. (NYSE: ESNT) announced today that its
wholly-owned subsidiary, Essent Guaranty, Inc., has obtained $557.9
million of fully collateralized excess of loss reinsurance coverage
on mortgage insurance policies written in August 2020 through March
2021 from Radnor Re 2021-1 Ltd., a newly formed Bermuda special
purpose insurer. Radnor Re 2021-1 Ltd. is not a subsidiary or an
affiliate of Essent Group Ltd.
Radnor Re 2021-1 Ltd. has funded its reinsurance obligations
through the issuance of five classes of mortgage insurance-linked
notes, with 12.5-year legal maturities, to eligible third party
capital markets investors in an unregistered private offering.
The mortgage insurance-linked notes issued by Radnor Re 2021-1
Ltd. consist of the following five classes:
- $139,478,000 Class M-1A Notes with an initial interest rate of
SOFR Rate plus 165 basis points;
- $132,504,000 Class M-1B Notes with an initial interest rate of
SOFR Rate plus 170 basis points;
- $153,426,000 Class M-1C Notes with an initial interest rate of
SOFR Rate plus 270 basis points;
- $97,634,000 Class M-2 Notes with an initial interest rate of
SOFR Rate plus 315 basis points;
- $34,869,000 Class B-1 Notes with an initial interest rate of
SOFR Rate plus 400 basis points;
The securities described herein have not been and will not be
registered under the U.S. Securities Act of 1933 and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements. This press
release shall not constitute an offer to sell or a solicitation of
an offer to buy any of the aforementioned securities and shall not
constitute an offer, solicitation or sale in any state or
jurisdiction in which, or to any person to whom, such an offer,
solicitation or sale would be unlawful.
Forward-Looking Statements
This press release may include “forward-looking statements”
which are subject to known and unknown risks and uncertainties,
many of which may be beyond our control. Forward-looking statements
generally can be identified by the use of forward-looking
terminology such as "may," "will," “should,” “expect,” "plan,"
"anticipate," "believe," “estimate,” “predict,” or "potential" or
the negative thereof or variations thereon or similar terminology.
Actual events, results and outcomes may differ materially from our
expectations due to a variety of known and unknown risks,
uncertainties and other factors. Although it is not possible to
identify all of these risks and factors, they include, among
others, the following: the impact of COVID-19 and related economic
conditions; changes in or to Fannie Mae and Freddie Mac (the
“GSEs”), whether through Federal legislation, restructurings or a
shift in business practices; failure to continue to meet the
mortgage insurer eligibility requirements of the GSEs; competition
for customers; lenders or investors seeking alternatives to private
mortgage insurance; an increase in the number of loans insured
through Federal government mortgage insurance programs, including
those offered by the Federal Housing Administration; decline in new
insurance written and franchise value due to loss of a significant
customer; decline in the volume of low down payment mortgage
originations; the definition of "Qualified Mortgage" reducing the
size of the mortgage origination market or creating incentives to
use government mortgage insurance programs; the definition of
"Qualified Residential Mortgage" reducing the number of low down
payment loans or lenders and investors seeking alternatives to
private mortgage insurance; the implementation of the Basel III
Capital Accord discouraging the use of private mortgage insurance;
a decrease in the length of time that insurance policies are in
force; uncertainty of loss reserve estimates; deteriorating
economic conditions; our non-U.S. operations becoming subject to
U.S. Federal income taxation; becoming considered a passive foreign
investment company for U.S. Federal income tax purposes; and other
risks and factors described in Part I, Item 1A “Risk Factors” of
our Annual Report on Form 10-K for the year ended December 31, 2020
filed with the Securities and Exchange Commission on February 26,
2021, as subsequently updated through other reports we file with
the Securities and Exchange Commission. Any forward-looking
information presented herein is made only as of the date of this
press release, and we do not undertake any obligation to update or
revise any forward-looking information to reflect changes in
assumptions, the occurrence of unanticipated events, or
otherwise.
About the Company:
Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding
company (collectively with its subsidiaries, “Essent”) which,
through its wholly-owned subsidiary, Essent Guaranty, Inc., offers
private mortgage insurance for single-family mortgage loans in the
United States. Essent provides private capital to mitigate mortgage
credit risk, allowing lenders to make additional mortgage financing
available to prospective homeowners. Headquartered in Radnor,
Pennsylvania, Essent Guaranty, Inc. is licensed to write mortgage
insurance in all 50 states and the District of Columbia, and is
approved by Fannie Mae and Freddie Mac. Essent also offers
mortgage-related insurance, reinsurance and advisory services
through its Bermuda-based subsidiary, Essent Reinsurance Ltd.
Essent is committed to supporting environmental, social and
governance (“ESG”) initiatives that are relevant to the company and
align with the companywide dedication to responsible corporate
citizenship that positively impacts the community and people
served. Additional information regarding Essent may be found at
www.essentgroup.com and www.essent.us.
Source: Essent Group Ltd.
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version on businesswire.com: https://www.businesswire.com/news/home/20210624005202/en/
Media Contact 610.230.0556 media@essentgroup.com
Investor Relations Contact Christopher G. Curran Senior
Vice President – Investor Relations 855-809-ESNT
ir@essentgroup.com
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