RICHMOND, Va., Sept. 20, 2021 /PRNewswire/ -- Genworth
Financial, Inc. (NYSE: GNW) today announced that it has
successfully completed the initial public offering (IPO) of its
subsidiary, Enact Holdings, Inc. (Enact), a leading provider of
private mortgage insurance through its insurance subsidiaries.
15,306,960 shares of Enact common stock were sold in the IPO,
including the full exercise by the underwriters of their
overallotment option to purchase 1,996,560 shares, at a price to
the public of $19.00 per share. Enact
is now trading on the Nasdaq Global Select Market under the ticker
symbol "ACT."
All of the shares were offered and sold by the selling
stockholder, Genworth Holdings, Inc. (GHI), a wholly owned
subsidiary of Genworth Financial, Inc.
In addition, certain investment funds managed by Bayview Asset
Management, LLC (Bayview) purchased 14,655,600 shares of Enact's
common stock from GHI in a concurrent private sale at a price per
share equal to the initial public offering price less the
underwriting discount per share.
These transactions, including the IPO and the private sale of
shares to Bayview, resulted in a total sale of 29,962,560 shares
and GHI received aggregate net proceeds after underwriters' fees of
approximately $535 million, before
other fees and expenses.
As a result of these sales, Genworth's ownership of Enact
decreased from 100% to 81.6%.
Genworth plans to use the net proceeds from the transactions to
retire in full the outstanding balance on its promissory note with
AXA and partially repay other outstanding indebtedness.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
served as lead book-running managers for the IPO.
A registration statement relating to the shares sold in the IPO
was declared effective by the U.S. Securities and Exchange
Commission on September 15, 2021. The
offering was made only by means of a prospectus, copies of which
may be obtained from: Goldman Sachs & Co. LLC, Attention:
Prospectus Department, 200 West Street, New York, NY 10282, by email at
prospectus-ny@ny.email.gs.com, or by telephone at (866)
471-2526; or J.P. Morgan Securities LLC, c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by email at
prospectus-eq_fi@jpmchase.com, or by telephone at
1-866-803-9204.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance
holding company committed to helping families achieve the dream of
homeownership and address the financial challenges of aging through
its leadership positions in mortgage insurance and long term care
insurance. Headquartered in Richmond,
Virginia, Genworth traces its roots back to 1871 and became
a public company in 2004.
About Enact
Enact, operating principally through its wholly owned subsidiary
Genworth Mortgage Insurance Corp. since 1981, is a leading U.S.
private mortgage insurance provider committed to helping more
people achieve the dream of homeownership. Building on a deep
understanding of lenders' businesses and a legacy of financial
strength, we partner with lenders to bring best-in class service,
leading underwriting expertise, and extensive risk and capital
management to the mortgage process, helping to put more people in
homes and keep them there. By empowering customers and their
borrowers, Enact seeks to positively impact the lives of those in
the communities in which it serves in a sustainable way. Enact is
headquartered in Raleigh, North
Carolina.
Cautionary Note Regarding Forward-Looking Statements
This communication contains certain "forward-looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements may
be identified by words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates," "will" or words of
similar meaning & include, but are not limited to, statements
regarding the outlook for future business and financial performance
of Genworth Financial, Inc. (Genworth) and its consolidated
subsidiaries. Examples of forward-looking statements include
statements the company makes relating to the repayment of the
promissory note with AXA, S.A. and future reductions of debt.
Forward-looking statements are based on management's current
expectations and assumptions, which are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. Actual outcomes and results may differ
materially due to global political, economic, business,
competitive, market, regulatory and other factors and risks,
including those discussed at the end of this presentation, as well
as in the risk factor section of Genworth's Annual Report on Form
10-K, filed with the United States Securities and Exchange
Commission (SEC) on February 26,
2021. Genworth undertakes no obligation to publicly update
any forward-looking statement, whether as a result of new
information, future developments or otherwise.
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SOURCE Genworth Financial, Inc.