/THIS PRESS RELEASE MAY NOT BE PUBLISHED,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, May 16, 2023
/CNW/ - Sagen MI Canada Inc. (the "Company" or "Sagen") (TSX:
MIC.PR.A) announced today that it has agreed to issue $200 million of debentures (the "Debentures") by
way of private placement under applicable Canadian securities laws.
The Debentures will be senior direct, unsecured and unsubordinated
obligations of the Company and will rank equally and rateably with
all other unsecured and unsubordinated indebtedness of the Company.
The Debentures are to be offered by a syndicate of agents including
Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc.,
CIBC World Markets Inc., National Bank Financial Inc. and RBC
Dominion Securities Inc.
The Debentures will bear interest at a fixed annual rate of
5.909%, payable semi-annually in equal instalments in arrears on
May 19 and November 19 in each year, commencing on
November 19, 2023, until maturity on
May 19, 2028, unless redeemed at an
earlier date. The Debentures are expected to be assigned a rating
of A (high) by DBRS and a rating of BBB+ by S&P. The Company
intends to use the net proceeds of the offering for the potential
redemption, refinancing, and repayment of the Company's outstanding
2.242% debentures due April 1, 2024
and any other outstanding indebtedness, and for liquidity and
capital management purposes. The Debentures are expected to be
issued on May 19, 2023.
This press release does not constitute an offer to sell or a
solicitation to buy securities in any jurisdiction. The Debentures
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 Debentures
in the United States.
About Sagen MI Canada
Inc.
Sagen MI Canada Inc., operating through its wholly owned
subsidiary, Sagen Mortgage Insurance Company Canada (doing business
as SagenTM), 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.
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
Debentures and the Company's intention to reduce existing
indebtedness, 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 MI Canada and
Sagen are trademarks owned by Sagen MI Canada Inc.
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SOURCE Sagen MI Canada Inc.