Essent Group amended its credit facility to increase the total facility from $625 million to $825 million with terms that provide for:
- An increase in the revolving credit facility from $300 million to $400 million
- The issuance of an additional $100 million term loan
- The revolving credit facility and term loans maturing concurrently in December 2026
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JPMorgan Chase Bank, BofA Securities and Royal Bank of Canada Capital Markets acted as joint lead arrangers and joint bookrunners for the credit facility. Associated Bank, Citizens Bank, KeyBanc Capital Markets and U.S. Bank also acted as joint lead arrangers.
Borrowings under the credit facility are available for working capital and general corporate purposes, including, without limitation, capital contributions to Essent’s insurance and reinsurance subsidiaries.
“We are very pleased with the latest amended terms of the facility, which we believe are reflective of Essent’s strong financial profile,” Mark A. Casale, chairman and CEO of Essent Group, said. “The additional increase of the commitment under the credit facility and the extension of the maturity to December 2026 again further enhances our already strong capital and liquidity position and adds to our financial flexibility.”
Borrowings under the revolving credit facility and term loan will accrue interest at a floating rate tied to a standard short-term borrowing index, selected at Essent Group’s option, plus an applicable margin. The obligations under the credit facility are secured by certain assets of Essent Group, excluding the stock and assets of its insurance and reinsurance subsidiaries.
