NMI Holdings Refinances $150 Million Term Loan and Enters Into $85 Million Revolving Credit Facility
May 24 2018 - 4:01PM
NMI Holdings, Inc., (Nasdaq:NMIH), the parent of National Mortgage
Insurance Corporation (National MI), announced today that it
successfully completed the refinancing of its existing senior
secured term loan with a new five-year $150 million senior secured
term loan (the “Term Loan”). The Term Loan will bear interest at a
per annum rate for LIBOR based loans equal to LIBOR plus 4.75%. The
Term Loan was issued at a price equal to 99.5% of par.
The company also entered into a three-year, $85 million senior
secured revolving credit facility (the “Revolving Credit
Facility”). Borrowings under the Revolving Credit Facility may be
used for general corporate purposes, including capital
contributions to the company’s insurance subsidiaries. As of the
date of this announcement, no amounts have been borrowed under the
Revolving Credit Facility.
The credit agreement governing the Term Loan and the Revolving
Credit Facility, which will be filed with the Securities and
Exchange Commission as an exhibit to a Current Report on Form 8-K,
includes certain covenants and conditions customary for agreements
of this type.
J.P. Morgan, RBC Capital Markets and SunTrust Robinson Humphrey,
Inc. served as joint lead arrangers and joint bookrunners for the
transactions.
Cautionary Note Regarding Forward-Looking
Statements This press release contains forward looking
statement within the meaning of Section 27A of the Securities Act
of 1933, as amended (the “Securities Act”), Section 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements are statements about future, not past,
events and involve certain important risks and uncertainties, any
of which could cause our actual results to differ materially from
those expressed in our forward-looking statements. Forward-looking
statements in this press release include statements regarding the
company’s financing arrangements. Any or all of our forward-looking
statements in this press release may turn out to be inaccurate, and
you are cautioned not to place undue reliance on such statements.
More information about the risks, uncertainties and assumptions
affecting the company can be found in the risk factors and
forward-looking statements cautionary language contained in our
Annual Report on Form 10-K for the year ended December 31, 2017 and
in other filings we make with the Securities and Exchange
Commission. We do not undertake, and specifically disclaim, any
obligation to revise any forward-looking statements to reflect the
occurrence of future events or circumstances.
About NMI HoldingsNMI Holdings, Inc.
(NASDAQ:NMIH) is the parent company of National Mortgage Insurance
Corporation (National MI), a U.S.-based, private mortgage insurance
company enabling low down payment borrowers to realize home
ownership while protecting lenders and investors against losses
related to a borrower's default. To learn more, please visit
www.nationalmi.com.
Investor Contact John M. Swenson Vice
President, Investor Relations and Treasury
john.swenson@nationalmi.com(510) 788-8417
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