NMI Holdings, Inc. Prices $425 Million Senior Unsecured Notes Offering and Enters Into New $250 Million Unsecured Revolving Credit Facility
May 07 2024 - 5:37PM
NMI Holdings, Inc. (Nasdaq: NMIH) (the “Company”) announced
today that it has priced its public offering (the “Offering”) of
$425 million aggregate principal amount of senior unsecured notes
(the “Notes”). The Offering is expected to close on May 21, 2024,
subject to customary closing conditions.
The Notes will pay interest semiannually at a
rate of 6.0% per year and will mature on August 15, 2029. The
Company intends to use net proceeds of the Offering to redeem its
existing $400 million of 7.375% senior secured notes due
June 2025, with the balance to be used for general corporate
purposes.
RBC Capital Markets, LLC, Goldman Sachs
& Co. LLC, BMO Capital Markets Corp., Citigroup Global Markets
Inc. and Truist Securities, Inc. are acting as joint
book-running managers and Huntington Securities, Inc. and U.S.
Bancorp Investments, Inc. are acting as co-managers for the
Offering.
The Company also announced that it has entered
into a new $250 million five-year unsecured revolving credit
facility with commitments from a syndicate of banks led by RBC
Capital Markets, Bank of Montreal, Citibank, N.A. and Truist Bank,
and additional commitments from Goldman Sachs Bank USA, Huntington
National Bank and U.S. Bank National Association. The revolver is
undrawn and the credit agreement governing the revolving facility
was filed with the Securities and Exchange Commission as an exhibit
to the Company’s Form 10-Q for the period ended March 31, 2024 and
includes certain customary covenants and conditions.
The Notes are being offered for sale pursuant to
a shelf registration statement on Form S-3 (Registration No.
333-279160), filed with the U.S. Securities and Exchange Commission
(the “SEC”) on May 7, 2024, which includes a prospectus for the
offering to which this press release relates, and a related
prospectus supplement, filed with the SEC on May 7, 2024. Before
making an investment, potential investors should first read the
prospectus supplement and accompanying prospectus, the registration
statement and the other documents that the Company has filed or
will file with the SEC for more complete information
about the Company and the Offering. A copy of the prospectus
supplement and the accompanying base prospectus for the Offering
has been filed with the SEC and is available for free on
the SEC's website: www.sec.gov. Alternatively,
copies may be obtained from RBC Capital Markets,
LLC toll-free at 1-866-375-6829, Goldman Sachs & Co. LLC
toll-free at 1-866-471-2526, BMO Capital Markets Corp. toll-free at
1-866-864-7760, Citigroup Global Markets Inc. toll-free at
1-800-831-9146, or Truist Securities, Inc. toll-free at
1-800-685-4786.
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 jurisdiction in which such
offer, sale or solicitation would be unlawful. The Offering may be
made only by means of a prospectus supplement and accompanying base
prospectus filed with the SEC.
About NMI Holdings, Inc.
NMI Holdings, Inc. (NASDAQ: NMIH), is the
parent company of National Mortgage Insurance
Corporation (National MI), a U.S.-based, private mortgage
insurance company enabling low down payment borrowers to realize
home ownership while protecting lenders and investors against
losses related to a borrower's default.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward looking statements that are
made under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
statements about future, not past, events and rely on a number of
assumptions concerning future events and involve certain important
risks and uncertainties, any of which could cause our actual
results to differ materially from those expressed in our
forward-looking statements. Forward-looking statements in this
press release include, without limitation, statements regarding the
use of proceeds from the Offering. More information about the
risks, uncertainties and assumptions affecting NMIH include, but
are not necessarily limited to, the risk factors and
forward-looking statements cautionary language contained in our
Annual Report on Form 10-K and in other filings made with the U.S.
Securities and Exchange Commission. We do not undertake, and
specifically disclaim, any obligation to revise any forward-looking
statements to reflect the occurrence of future events or
circumstances.
Investor Contact John M. SwensonVice President,
Investor Relations and Treasuryjohn.swenson@nationalmi.com(510)
788-8417
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