Genworth Financial began syndication of a proposed senior secured term loan in an aggregate principal amount of up to $450 million. Goldman Sachs and JPMorgan Chase are joint lead arrangers and joint bookrunners for the transaction.
The proceeds of the loan are expected to be used, together with cash on hand, to repay existing indebtedness and transaction fees and expenses, and could be used to pay Genworth’s 6.515% senior unsecured notes due May 2018. The closing of the term loan, which is currently anticipated to occur in early March 2018, is subject to negotiation and execution of definitive loan documents and satisfaction of certain closing conditions.
As currently contemplated, the security package for the term loan would include a pledge of the publicly listed shares of Genworth’s Canadian mortgage insurance subsidiary, Genworth MI Canada, held by Genworth Financial International Holdings, a wholly owned subsidiary of Genworth. In addition, China Oceanwide Holdings Group has expressed an interest in participating in the loan. Genworth and Oceanwide are in discussions to determine Oceanwide’s potential involvement in the secured financing. There can be no assurance that syndication of the term loan will be successful, that Genworth will be able to obtain the term loan on the terms described above or on terms satisfactory to Genworth or that Genworth will enter into the term loan.
Genworth Financial is a Fortune 500 insurance holding company.
