Essent Group closes $200 million three-year revolving credit facility

By Tali Rackner

Norfolk, Va., April 21 – Essent Group Ltd., Essent Irish Intermediate Holdings Ltd. and Essent US Holdings, Inc. entered into a $200 million three-year revolving credit facility on Tuesday via administrative agent JPMorgan Chase Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

The agreement is comprised of a $200 million facility and a $25 million uncommitted line that may be exercised at the borrowers’ option so long as the borrowers receive commitments from lenders.

Interest is equal to Libor plus 150 basis points to 300 bps, based on Essent’s ratings. The quarterly commitment fee ranges from 20 bps to 50 bps, also determined by ratings.

Borrowings may be used for working capital and general corporate purposes, including, without limitation, capital contributions to Essent’s insurance and reinsurance subsidiaries.

The facility matures on April 19, 2019.

JPMorgan and Merrill Lynch, Pierce, Fenner & Smith Inc. acted as joint lead arrangers and bookrunners; Bank of America, NA and Royal Bank of Canada acted as syndication agents; and Goldman Sachs Lending Partners LLC, Associated Bank, NA and U.S. Bank NA acted as documentation agents.

“This credit facility enhances our financial flexibility as we continue to grow our company,” chairman and chief executive officer Mark Casale said in a press release.

“Furthermore, we are very pleased with the terms of the credit facility, which we believe are reflective of Essent’s strong financial profile.”

Essent is a Hamilton, Bermuda-based mortgage company.

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