Enact Enters Into $200 Million Revolving Credit Facility
July 07 2022 - 7:30AM
Enact Holdings, Inc. (Nasdaq: ACT) (Enact) today
announced that it entered into a five-year $200 million senior
unsecured revolving credit facility (the “Credit Facility”) on June
30, 2022. The company may use borrowings under the Credit Facility
for working capital needs and general corporate purposes, including
capital contributions to our insurance subsidiaries.
“This new credit facility enhances our financial flexibility and
bolsters our already strong balance sheet,” said Dean Mitchell,
Executive Vice President and Chief Financial Officer of Enact. “We
are pleased with the terms of the facility which reflect our strong
operating performance, credit profile and capital position.”
Borrowings under the Credit Facility will accrue interest at a
floating rate tied to a standard short-term borrowing index plus an
applicable margin, which is based on the company’s ratings and
currently stands at 200 basis points. As of the closing date, no
amounts have been borrowed under the Credit Facility. Additional
details related to the terms and conditions of the Credit Facility
are included in the credit agreement, which will be filed with the
Securities Exchange Commission as an exhibit to a Current Report on
Form 8-K.
The Credit Facility was entered into with five banks, led by
JPMorgan Chase Bank, N.A. as Administrative Agent and Joint Lead
Arranger and Truist Bank as Joint Lead Arranger, along with Goldman
Sachs Bank USA, Barclays Bank PLC and Citibank, N.A.
About Enact Holdings,
Inc.Enact (Nasdaq: ACT), operating
principally through its wholly-owned subsidiary Enact Mortgage
Insurance Corporation since 1981, is a leading U.S. private
mortgage insurance provider committed to helping more people
achieve the dream of homeownership. Building on a deep
understanding of lenders' businesses and a legacy of financial
strength, we partner with lenders to bring best-in class service,
leading underwriting expertise, and extensive risk and capital
management to the mortgage process, helping to put more people in
homes and keep them there. By empowering customers and their
borrowers, Enact seeks to positively impact the lives of those in
the communities in which it serves in a sustainable way. Enact is
headquartered in Raleigh, North Carolina.
Safe Harbor Statement This communication
contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act. These forward-looking
statements are based on current expectations, forecasts and
assumptions that involve risks and uncertainties that could cause
actual outcomes and results to differ materially, including
statements related to use of the proceeds from the facilities,
maturity dates and extension options, and ability to increase the
facilities. These forward-looking statements are distinguished by
use of words such as “will,” “may,” “would,” “anticipate,”
“expect,” “believe,” “designed,” “plan,” “predict,” “project,”
“target,” “could,” “should,” or “intend,” the negative of these
terms, and similar references to future periods. These views
involve risks and uncertainties that are difficult to predict and,
accordingly, our actual results may differ materially from the
results discussed in our forward-looking statements, including the
potential for future dividend payments which will be determined in
consultation with the Board of Directors, and after considering
economic and regulatory factors, current risks to the Company, and
subsidiary performance. For a list of risks and uncertainties,
please see the Company’s reports and other filings with the U.S.
Securities and Exchange Commission. Although Enact believes the
expectations reflected in such forward-looking statements are based
on reasonable assumptions, the Company can give no assurance that
its expectations will be achieved and it undertakes no obligation
to update publicly any forward-looking statements as a result of
new information, future events, or otherwise, except as required by
applicable law.
Investor Contact
Daniel Kohl
daniel.kohl@enactmi.com
Media Contact
Brittany Harris-Flowers
brittany.harris-flowers@enactmi.com
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