Genworth seeks consents from holders of seven series of notes for sale of assets

By Rebecca Melvin

New York, July 24 – Genworth Holdings Inc., a subsidiary of Genworth Financial Inc., announced a solicitation of consents from the holders of seven series of notes regarding authorization for sale and/or disposition of its non-U.S. mortgage insurance businesses or assets, including Genworth MI Canada Inc.

The sale may be in one or more transactions for all or part of its non-U.S. mortgage insurance businesses or assets, according to a company news release.

Any holder who validly delivers its consent prior to the consent solicitation expiration at 5 p.m. ET on Aug. 8 will receive a consent fee consisting of a cash payment of $2.50 per $1,000 principal amount of notes.

The notes covered by the solicitation and the consent fee are as follows:

• $397 million of 7.7% senior notes due June 2020;

• $381,703,000 of 7.2% senior notes due February 2021;

• $698,319,000 of 7 5/8% senior notes due September 2021;

• $400 million of 4.9% senior notes due August 2023;

• $400 million of 4.8% senior notes due February 2024;

• $300 million of 6½% senior notes due June 2034;

• $600 million of 6.15% fixed-to-floating rate junior subordinated notes due November 2066.

The company is considering the sale of Genworth Canada to increase the likelihood of subsequently completing the acquisition of Genworth Financial Inc. by China Oceanwide Holdings Group Co. Ltd. and its affiliates. The company also believes that the sale would allow it to reduce its outstanding debt and increase financial flexibility.

Adoption of the proposed amendments requires the consent of the holders of at least a majority of the aggregate principal amount of each series of the outstanding notes.

BofA Securities is acting as the solicitation agent, and Global Bondholder Services Corp. is acting as the information agent and tabulation agent in connection with the consent solicitation.

The financial security company is based in Richmond, Va.

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