Essent Group Ltd., Essent Irish Intermediate Holdings Limited and Essent US Holdings, Inc. Enter into A Third Amended and Restated Credit Agreement
December 14, 2021 at 12:41 pm
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On December 10, 2021, Essent Group Ltd., Essent Irish Intermediate Holdings Limited (Essent Irish) and Essent US Holdings, Inc. (together with the Company and Essent Irish, the Borrowers") entered into a Third Amended and Restated Credit Agreement, with a committed capacity of $825 million (the Credit Agreement"), among the lenders party thereto (the Lenders") and JP Morgan Chase Bank, N.A., as administrative agent (the Administrative Agent"). The Credit Agreement amends and restates that certain Second Amended and Restated Credit Agreement dated as of October 14, 2020 (the "Prior Credit Agreement"), by and among the Borrowers, the lenders party thereto and the Administrative Agent, as more fully disclosed in the Company's Form 8-K filed with the Securities and Exchange Commission on October 20, 2020. The amended terms of the Credit Agreement provide for (i) an increase in the revolving credit facility from $300 million under the Prior Credit Agreement to $400 million, (ii) the incurrence of $100 million of new term loans in addition to the $325 million already outstanding under the Prior Credit Agreement, and (iii) up to $175 million aggregate principal amount of uncommitted incremental term loan and/or revolving credit facilities that may be exercised at the Borrowers' option so long as the Borrowers receive commitments from the Lenders. The revolving credit facility expires and the term loans mature under the Credit Agreement on the fifth anniversary of closing, December 10, 2026. Borrowings under the Credit Agreement will accrue interest at a floating rate tied to a standard short-term borrowing index, selected at the Borrower's option, plus an applicable margin. As of the closing date, the outstanding borrowings under the term loan facility had an interest rate of approximately 1.79%, based upon the 1-Month Term SOFR rate plus the applicable margin set forth in the Credit Agreement. The term loan balance will amortize at an annual 10% rate in years 4 and 5 of the Credit Agreement. The obligations under the Credit Agreement are secured by certain assets of the Borrowers, excluding the stock and assets of their insurance and reinsurance subsidiaries.
Essent Group Ltd. is a holding company. The Company, through its wholly owned subsidiaries, offers private mortgage insurance, reinsurance, risk management products and title insurance and settlement services to mortgage lenders, borrowers, and investors to support homeownership. In addition to offering mortgage insurance, it provides contract underwriting services on a limited basis through CUW Solutions, LLC. It also offers mortgage-related insurance and reinsurance through its Bermuda-based subsidiary, Essent Reinsurance Ltd. It provides private capital to mitigate mortgage credit risk, allowing lenders to make additional mortgage financing available to prospective homeowners. Its products and services include mortgage insurance, contract underwriting, and Bermuda-Based insurance and reinsurance. It offers two types of private mortgage insurance, namely primary and pool. Its subsidiaries also include Agents National Title Holding Company and Boston National Holdings LLC.