RICHMOND, Va., Feb. 28, 2021 /PRNewswire/ -- Genworth Financial,
Inc. (NYSE: GNW) today announced that its wholly owned subsidiaries
Genworth Financial International Holdings, LLC and Genworth
Holdings, Inc. (as partners) (together, "Genworth") have sold,
through an underwritten agreement, approximately 214.3 million
shares in Genworth Mortgage Insurance Australia Limited ("Genworth
Australia") at A$2.28 per share. This
represents Genworth's entire ownership position in Genworth
Australia. Settlement of the sale will occur on March 3 (Sydney
time).
"We're pleased to take this additional step in our revised
strategic plan. This transaction will help enhance our holding
company liquidity ahead of our near-term obligations, including our
debt due in September 2021 and
upcoming AXA liabilities due in 2022," said Tom McInerney, Genworth President and CEO.
Completion of this transaction will result in a payment of
approximately USD$247 million under
our outstanding AXA promissory note, pursuant to its terms as
amended by the parties in connection with this transaction.
Following this payment, the net proceeds available to Genworth will
be approximately USD$123 million.
As previously announced, Genworth will continue to prepare for a
potential partial IPO of Genworth's U.S. Mortgage Insurance (U.S.
MI) business, subject to market conditions as well as the
satisfaction of various conditions and approvals.
Important notice
This announcement does not
constitute an offer to sell, or the solicitation of an offer to
buy, any securities in the United
States. The securities offered and sold by Genworth set out
in this announcement have not been and will not be registered under
the U.S. Securities Act of 1933, as amended (the "Securities Act"),
or under the securities laws of any state or other jurisdiction of
the United States, and may not be
offered or sold, directly or indirectly, in the United States except in compliance with
the registration requirements of the Securities Act and any other
applicable securities laws of any state or other jurisdiction of
the United States or pursuant to
an exemption from, or in a transaction not subject to, such
registration requirements and any other applicable securities
laws.
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.
For more information, visit genworth.com.
From time to time, Genworth releases important information via
postings on its corporate website. Accordingly, investors and other
interested parties are encouraged to enroll to receive automatic
email alerts and Really Simple Syndication (RSS) feeds regarding
new postings. Enrollment information is found under the "Investors"
section of genworth.com. From time to time, Genworth's publicly
traded subsidiary, Genworth Mortgage Insurance Australia Limited,
releases financial and other information about its operations. This
information can be found at http://www.genworth.com.au.
Cautionary Note Regarding Forward-Looking
Statements
This communication includes certain statements
that may constitute "forward-looking statements" within the meaning
of the federal securities laws, including Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements may be identified by words such as "expects," "intends,"
"anticipates," "plans," "believes," "seeks," "estimates," "will" or
words of similar meaning and include, but are not limited to,
statements regarding the outlook for our future business and
financial performance. 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 from those in the forward-looking
statements and factors that may cause such a difference include,
but are not limited to, risks and uncertainties related to: (i) the
risk that Genworth may be unable to successfully execute on any of
its strategic plans to effectively address its current business
challenges; (ii) the risk that Genworth will be unable to
address its near-term liabilities and financial obligations,
including the risks that it will be unable to raise additional debt
financing and/or sell a percentage of its ownership interest in its
U.S. mortgage insurance business to repay the promissory note to
AXA S.A. or refinance its debt maturing in 2021 or beyond; (iii)
potential adverse reactions or changes to Genworth's business
relationships with clients, employees, suppliers or other parties
or other business uncertainties resulting from the transaction or
its announcement, including but not limited to such changes that
could affect Genworth's financial performance; (iv) rating agency
actions and downgrades in Genworth's financial strength ratings;
(v) changes in applicable laws or regulations; (vi) Genworth's
ability to recognize the anticipated benefits of the transaction;
(vii) the amount of the costs, fees, expenses and other charges
related to the transaction; (viii) the risks related to diverting
management's attention from Genworth's ongoing business operations;
(ix) the impact of changes in interest rates and political
instability; and (x) other risks and uncertainties described in
Genworth's Annual Report on Form 10-K, filed with the SEC on
Feb 26, 2021. Unlisted factors may
present significant additional obstacles to the realization of
forward-looking statements. Consequences of material differences in
results as compared with those anticipated in the forward-looking
statements could include, among other things, business disruption,
operational problems, financial loss, legal liability to third
parties and similar risks, any of which could have a material
adverse effect on Genworth's consolidated financial condition,
results of operations, credit rating or liquidity. Accordingly, we
caution you against relying on any forward-looking statements.
Further, forward-looking statements should not be relied upon as
representing Genworth's views as of any subsequent date, and
Genworth does not undertake any obligation to update
forward-looking statements to reflect events or circumstances after
the date they were made, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
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SOURCE Genworth Financial, Inc.