Sagen MI Canada Inc. Completes Issuance of $200 Million of Unsecured Debentures due May 19, 2028 and Announces Redemption on June 19, 2023 of its Outstanding 4.242% Debentures due April 1, 2024
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TORONTO, May 19, 2023 /CNW/ - Sagen MI Canada Inc. (the "Company" or "Sagen") (TSX: MIC.PR.A) announced today that it completed its previously announced offering (the "Offering") of $200 million of 5.909% debentures due May 19, 2028 by way of private placement under applicable Canadian securities laws. The Offering was made through a syndicate of agents led by Scotia Capital, including TD Securities, BMO Capital Markets, CIBC World Markets, National Bank Financial and RBC Capital Markets.
The Company also announced today that it will redeem all of its outstanding 4.242% debentures due April 1, 2024 (the "Redeemed Debentures").1 The Company has given notice to the registered holder of the Redeemed Debentures that it will redeem on June 19, 2023 (the "Redemption Date") the outstanding $169.934 million aggregate principal amount of Redeemed Debentures.
Pursuant to the terms of the trust indenture governing the Redeemed Debentures, the Redeemed Debentures will be redeemed on the Redemption Date at a price equal to the greater of the Canada Yield Price and par, together in each case with accrued and unpaid interest to the Redemption Date.
The Canada Yield Price, with respect to any redemption date, means a price which would provide a yield from the Redemption Date to April 1, 2024 equal to the Government of Canada Yield, plus 45 basis points (0.45%), compounded semi-annually.
Sagen MI Canada Inc., operating through its wholly owned subsidiary, Sagen Mortgage Insurance Company Canada (doing business as Sagen™), is the largest private sector residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. Sagen differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For more than two decades, the Company has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at March 31st, 2023, the Company had $6.7 billion total assets and $2.8 billion shareholders' equity. Find out more at www.sagen.ca.
Certain statements made in this news release contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company are intended to identify forward-looking statements. Specific forward-looking statements in this document include, but are not limited to, statements with respect to the Company's expectations regarding its intention to redeem the Redeemed Debentures, and other statements contained in this release that are not historical facts.
Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. The Company cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. The Company does not undertake to update any forward-looking statements, except to the extent required by applicable securities laws.
Sagen is a trademark owned by Sagen MI Canada Inc.
1 The Company's press release dated May 16, 2023 contained a typographical error that improperly stated the interest rate of the Redeemed Debentures as 2.242% rather than the correct interest rate of 4.242%. |
For further information:
Investors – Philip Mayers, 905-287-5393 [email protected]
Media – Susan Carter, 905-287-5520 [email protected]
SOURCE Sagen MI Canada Inc.
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