Essent Group increased its existing credit facility to $500 million from $375 million.
“We are pleased with our strong first quarter results as we continue to build a high credit quality and profitable mortgage insurance portfolio,” said Mark Casale, chairman and CEO. “During the quarter, we grew insurance in force 31% compared to March 31st a year ago, while also generating a 23% annualized return on average equity. Additionally, we closed our inaugural credit risk transfer transaction, which expanded our capital sources while also providing a layer of protection against adverse credit losses.”
According to a related 8-K filing, JPMorgan was administrative agent on the transaction. JPMorgan, Bank of America Merrill Lynch and Royal Bank of Canada served at joint lead arrangers and joint bookrunners.
The amended facility includes an increase in the revolving credit facility to $275 million from $250 million, a $100 million uncommitted line that may be exercised at the borrowers’ option so long as the borrowers receive commitments from the lenders and the issuance of $100 million of new term loans in addition to the $125 million already outstanding under the credit agreement. The proceeds of the loans were used at closing to pay down borrowings outstanding under the revolving credit facility.
