RICHMOND, Va., March 7, 2018 /PRNewswire/ -- Genworth Financial, Inc. (NYSE: GNW) announced today that it successfully closed a $450 million senior secured term loan (the "Term Loan"). The Term Loan has a 5-year term, bears interest at a per annum rate equal to the London Interbank Offered Rate ("LIBOR") plus 4.50%, and was issued at a price equal to 99.5% of par value. The proceeds of the Term Loan will be used, together with cash on hand, to repay existing indebtedness and transaction fees and expenses, and could be used to pay Genworth's 6.515% senior unsecured notes due May 2018.
China Oceanwide Holdings Group Co., Ltd. ("Oceanwide") through its affiliate, Oceanwide Center LLC, was the lead investor in the Term Loan with a $60 million allocation.
Genworth was advised on the new financing by Sidley Austin LLP. Goldman Sachs Lending Partners LLC and JPMorgan Chase Bank, N.A. acted as joint lead arrangers and joint book runners for the Term Loan.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.
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Cautionary Note Regarding Forward-Looking Statements
This communication includes certain statements that may constitute "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements regarding the marketing, negotiation and consummation of the Term Loan, the use of proceeds from the Term Loan and any expectation regarding timing of the closing of the Term Loan. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements and factors that may cause such a difference include, but are not limited to, risks and uncertainties related to: (i) changes in the general economy, interest rates and political instability; (ii) Genworth's inability to comply with the covenants in the Term Loan and the indentures governing its outstanding senior notes; (iii) continued availability of capital and financing to Genworth before the consummation of the proposed merger transaction with Oceanwide; (iv) further rating agency actions and downgrades in Genworth's financial strength ratings; (v) changes in applicable laws or regulations; (vi) the amount of the costs, fees, expenses and other charges related to Term Loan; (vii) market conditions that may make it difficult to obtain funding; (viii) potential further impairments to our access to funding due to our credit or financial strength ratings and our financial condition; (ix) the sufficiency of our internal liquidity sources to meet our needs and our access to capital may be limited or unavailable; and (x) other risks and uncertainties described in the Definitive Proxy Statement, filed with the SEC on January 25, 2017, and Genworth's Annual Report on Form 10-K, filed with the SEC on February 28, 2018. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Genworth's consolidated financial condition, results of operations, credit rating or liquidity. Accordingly, forward-looking statements should not be relied upon as representing Genworth's views as of any subsequent date, and Genworth does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
SOURCE Genworth Financial, Inc.