Sagen MI Canada Inc. to Issue $150 Million of Hybrid Notes

/THIS PRESS RELEASE MAY NOT BE PUBLISHED, DISTRIBUTED OR TRANSMITTED IN OR INTO THE UNITED STATES OR OVER UNITED STATES WIRE OR NEWS SERVICES./

TORONTO, March 18, 2021 /CNW/ - Sagen MI Canada Inc. (TSX: MIC) (the "Company") announced today that it has agreed to issue $150 million aggregate principal amount of 4.95% Fixed-to-Fixed Rate Subordinated Notes Series 2021-1 due March 24, 2081 (the "Notes"). The Notes will be direct, unsecured and subordinated obligations of the Company. The Notes are to be offered by a syndicate of agents including RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc., Scotia Capital Inc., and TD Securities Inc.

Interest on the Notes will be payable semi-annually in equal instalments in arrears on March 24 and September 24 in each year commencing September 24, 2021, until maturity on March 24, 2081, unless redeemed at an earlier date. From the date of issue to, but excluding, March 24, 2031, the Notes will bear interest at a fixed rate of 4.95% per annum. From and including March 24, 2031, and on every fifth anniversary thereafter during which the Notes are outstanding, the interest rate on the Notes will be reset at a fixed rate per annum to be determined in accordance with the terms of the Notes.

The Notes are expected to be assigned a rating of A (low) by DBRS and a rating of BBB- by S&P. The Company intends to use the net proceeds of the offering to strengthen the Company's capital base, for distributions to shareholders (subject to the completion of the previously announced plan of arrangement pursuant to which Brookfield Business Partners L.P., together with certain of its affiliates and institutional partners ("Brookfield"), will acquire all of the outstanding common shares of the Company not already owned by Brookfield), and/or for general corporate purposes.

The Notes are expected to be issued on March 23, 2021. Details of the offering will be set out in a prospectus supplement to the Company's short form base shelf prospectus dated January 12, 2021, which the Company intends to file in Canada and which will be available on SEDAR at www.sedar.com.

This press release does not constitute an offer to sell or a solicitation to buy securities in any jurisdiction. The Notes have not been and will not be registered in the United States under the Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States or to U.S. Persons absent registration or applicable exemption from the registration requirement of such Act. This press release does not constitute an offer to sell or a solicitation to buy the Notes in the United States.

About Sagen MI Canada Inc.

Sagen MI Canada Inc. (TSX: MIC), operating through its wholly-owned subsidiary, Genworth Financial Mortgage Insurance Company Canada (doing business as Sagen^TM), 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. The Company 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 December 31, 2020, the Company had $7.5 billion total assets and $3.9 billion shareholders' equity. Find out more at www.sagen.ca.

Caution regarding forward-looking information and statements

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 future developments in connection with the offering of Notes, the intended use of proceeds from the issuance of the Notes 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.

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Sagen is a trademark owned by Sagen MI Canada Inc.

SOURCE Sagen MI Canada Inc.

Investors - Aaron Williams, 905-287-5504 [email protected]; Media - Susan Carter, 905-287-5520 [email protected]