Press release from CNW Group
Genworth MI Canada Inc. to Issue $150 Million Senior Unsecured Debentures
Monday, December 13, 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/THIS PRESS RELEASE MAY NOT BE PUBLISHED, DISTRIBUTED OR TRANSMITTED IN OR INTO THE UNITED STATES OR OVER UNITED STATES WIRE OR NEWS SERVICES./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, Dec. 13 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) announced today that it has agreed to issue $150 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 4.59% until maturity on December 15, 2015. The Debentures have been assigned a preliminary rating of A- by Standard & Poor's and a preliminary 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 December 16, 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 www.sedar.com.
The 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 September 30, 2010, Genworth Financial Canada had $5.3 billion in total assets and $2.6 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 www.genworth.ca.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements. These forward-looking statements include, but are not limited to, the Company'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 the Company'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 Company's control. 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 email@example.com
Media - Anita DiPaolo-Booth, 905-287-5394 firstname.lastname@example.org