Blackstone Makes Investment in Mortgage Insurer PMI Group
September 02 2015 - 6:50PM
Dow Jones News
Mortgage insurer PMI Group said Wednesday that Blackstone Group
LP has made an investment of an undisclosed size in the
company.
The New York investment firm has agreed to provide PMI with a
loan for working capital needs, in connection with the purchase of
a significant equity stake. Blackstone now has the rights to
participate in future equity offerings and will nominate a director
to the board.
PMI will use the money to pursue its investment strategy.
PMI, a residential mortgage insurance provider, sought
protection from its creditors in the U.S. Bankruptcy Court in 2011,
listing assets of $225 million and debts of more than $736 million.
One of the country's largest private-sector mortgage insurers, PMI
had seen its business deteriorate along with the U.S. housing
market.
It filed for Chapter 11 bankruptcy protection after an Arizona
judge rejected its bid to overturn the seizure of its
mortgage-insurance unit by state regulators.
Write to Angela Chen at angela.chen@wsj.com
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(END) Dow Jones Newswires
September 02, 2015 18:35 ET (22:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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