Essent Group Ltd. Prices Public Offering of Common Stock
August 08 2017 - 8:00AM
Business Wire
Essent Group Ltd. (the “Company”) (NYSE:ESNT) announced today
that it has priced a public offering of 5,000,000 common shares
(the “Offering”). The Company expects to receive gross proceeds
from the Offering of approximately $199.5 million before deducting
underwriting discounts and commissions and estimated offering
expenses payable by the Company. The Offering is expected to close
on August 11, 2017, subject to customary closing conditions.
Barclays is acting as sole underwriter for the Offering. In
connection with the Offering, Barclays has a thirty-day option to
purchase from the Company up to an additional 750,000 common
shares.
The Company intends to use the net proceeds from the Offering
for general corporate purposes, which may include (i) capital
contributions to support the growth of the Company’s insurance
subsidiaries, and (ii) reducing borrowings owed by the Company
under that certain amended and restated credit facility entered
into by the Company and certain of its affiliates.
The common shares are being offered pursuant to an effective
shelf registration statement (including a base prospectus) under
the Securities Act of 1933, as amended, that has been filed with
the U.S. Securities and Exchange Commission (the “SEC”). Any offer,
or solicitation to buy, if at all, will be made solely by means of
a preliminary prospectus supplement and the accompanying base
prospectus. Copies of the preliminary prospectus supplement and the
accompanying prospectus may be obtained, when available, from the
SEC’s website at www.sec.gov. Alternatively, when available, copies
may be obtained from the prospectus departments of: Barclays
Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, NY 11717, telephone: 888-603-5847, or email:
Barclaysprospectus@broadridge.com.
This press release is for informational purposes only and does
not constitute an offer to sell or the solicitation of an offer to
buy any security of the Company, nor will there be any sale of any
such security in any state or jurisdiction in which such offer,
sale or solicitation would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
Forward-Looking Statements
This press release may include “forward-looking statements”
which are subject to known and unknown risks and uncertainties,
many of which may be beyond our control. Forward-looking statements
generally can be identified by the use of forward-looking
terminology such as "may," "plan," "seek," "comfortable with,"
"will," "expect," "intend," "estimate," "anticipate," "believe" or
"continue" or the negative thereof or variations thereon or similar
terminology. Actual events, results and outcomes may differ
materially from our expectations due to a variety of known and
unknown risks, uncertainties and other factors. Although it is not
possible to identify all of these risks and factors, they include,
among others, the following: changes in or to Fannie Mae and
Freddie Mac (the “GSEs”), whether through Federal legislation,
restructurings or a shift in business practices; failure to
continue to meet the mortgage insurer eligibility requirements of
the GSEs; competition for customers or the loss of a significant
customer; lenders or investors seeking alternatives to private
mortgage insurance; an increase in the number of loans insured
through Federal government mortgage insurance programs, including
those offered by the Federal Housing Administration; decline in the
volume of low down payment mortgage originations; uncertainty of
loss reserve estimates; decrease in the length of time our
insurance policies are in force; deteriorating economic conditions;
the definition of "Qualified Mortgage" reducing the size of the
mortgage origination market or creating incentives to use
government mortgage insurance programs; the definition of
"Qualified Residential Mortgage" reducing the number of low down
payment loans or lenders and investors seeking alternatives to
private mortgage insurance; the implementation of the Basel III
Capital Accord discouraging the use of private mortgage insurance;
non-U.S. operations becoming subject to U.S. Federal income
taxation; becoming considered a passive foreign investment company
for U.S. Federal income tax purposes; and other risks and factors
described in Part I, Item 1A “Risk Factors” of our Annual Report on
Form 10-K for the year ended December 31, 2016 filed with the
Securities and Exchange Commission on February 16, 2017. Any
forward-looking information presented herein is made only as of the
date of this press release, and we do not undertake any obligation
to update or revise any forward-looking information to reflect
changes in assumptions, the occurrence of unanticipated events, or
otherwise.
About the Company
Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding
company (collectively with its subsidiaries, “Essent”) which,
through its wholly-owned subsidiary Essent Guaranty, Inc., offers
private mortgage insurance for single-family mortgage loans in the
United States. Essent provides private capital to mitigate mortgage
credit risk, allowing lenders to make additional mortgage financing
available to prospective homeowners. Headquartered in Radnor,
Pennsylvania, Essent Guaranty, Inc. is licensed to write mortgage
insurance in all 50 states and the District of Columbia, and is
approved by Fannie Mae and Freddie Mac. Essent also offers
mortgage-related insurance, reinsurance and advisory services
through its Bermuda-based subsidiary, Essent Reinsurance Ltd.
Additional information regarding Essent may be found at
www.essentgroup.com and www.essent.us.
Source: Essent Group Ltd.
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Essent Group
Ltd.Media:610-230-0556media@essentgroup.comorInvestor
Relations:Christopher G. Curran,
855-809-ESNTir@essentgroup.com
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