Enact Enters Into $200 Million Revolving Credit Facility
RALEIGH, N.C., July 07, 2022 (GLOBE NEWSWIRE) -- 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.
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