The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Genworth MI Canada Inc. to Issue $275 Million Senior Unsecured Debentures

Friday, June 18, 2010

Genworth MI Canada Inc. to Issue $275 Million Senior Unsecured Debentures19:37 EDT Friday, June 18, 2010/THIS PRESS RELEASE MAY NOT BE PUBLISHED, DISTRIBUTED OR TRANSMITTED IN OR INTO THE UNITED STATES OR OVER UNITED STATES WIRE OR NEWS SERVICES./TORONTO, June 18 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) announced today that it has agreed to issue $275 million of debentures (the "Debentures"). The Debentures will be senior direct and unsecured obligations of the Company and will rank equally with all future unsecured and unsubordinated indebtedness of the Company. The Debentures are to be offered by a syndicate of agents led by Scotia Capital Inc., RBC Capital Markets and TD Securities Inc.The Debentures will bear interest at a fixed annual rate of 5.68% until maturity on June 15, 2020. The Debentures have been assigned a preliminary rating of A- by Standard & Poor's and a provisional rating of AA(Low) by DBRS. The net proceeds of the offering will be used to fund transactions among the Company and its Canadian wholly owned subsidiaries. The Company is expected to use any proceeds it receives from such transactions for general corporate and investment purposes, and/or to fund a distribution to, or a repurchase of common shares from, the Company's shareholders.The Debentures are expected to be issued on June 29, 2010. Details of the offering will be set out in a prospectus supplement to the Company's short form base shelf prospectus dated May 7, 2010, which the Company intends to file in Canada and which will be available on SEDAR at Debentures have not been and will not be registered in the United States under the Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States or to U. S. Persons absent registration or applicable exemption from the registration requirement of such Act. This press release does not constitute an offer to sell or a solicitation to buy the Debentures in the United States.About Genworth MI Canada Inc.Genworth MI Canada Inc., through its subsidiary, Genworth Financial Mortgage Insurance Company Canada, has been the leading Canadian private residential mortgage insurer since 1995. Known as Genworth Financial Canada, "The Homeownership Company," it provides default mortgage insurance to Canadian residential mortgage lenders that enables low down payment borrowers to own a home more affordably and stay in their homes during difficult financial times. Genworth Financial Canada combines technological and service excellence with risk management expertise to deliver innovation to the mortgage marketplace. As of March 31, 2010, Genworth Financial Canada had $5.1 billion in total assets and $2.7 billion in shareholders' equity. Based in Oakville, Ontario, Genworth Financial Canada employs approximately 265 people across Canada. Additional information about Genworth MI Canada Inc. is available at Note Regarding Forward-Looking StatementsThis press release includes certain forward-looking statements. These forward-looking statements include, but are not limited to, Genworth MI Canada's plans, objectives, expectations and intentions, including the Company's expectations regarding future developments in connection with the offering of Debentures and the Company's intention to make a distribution to, or repurchase common shares from, the Company's shareholders, and other statements contained in this release that are not historical facts. These statements may be identified by their use of words such as "expects", "anticipates", "contemplates", "intends", "plans", "believes", "seeks", "estimates", or words of similar meaning. These statements are based on Genworth MI Canada Inc.'s current beliefs or expectations, including, the Company's assumptions, beliefs and expectations regarding market conditions. These statements are inherently subject to significant risks, uncertainties and changes in circumstances, many of which are beyond the control of Genworth MI Canada Inc. The Company's actual results may differ materially from those expressed or implied by such forward looking statements, including as a result of changes in global, political, economic, business, competitive, market and regulatory factors, and the other risks described in the Company's Annual Information Form. Other than as required by applicable laws, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.For further information: Investors - Samantha Cheung, 905-287-5482,; Media - Anita DiPaolo-Booth, 905-287-5394,