/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR DISSEMINATION IN THE UNITED
STATES/
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.
About Sagen MI Canada
Inc.
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.
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 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%.
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For further information:
Investors – Philip Mayers,
905-287-5393 philip.mayers@sagen.ca
Media – Susan Carter, 905-287-5520
susan.carter@sagen.ca
SOURCE Sagen MI Canada Inc.