Genworth Financial Inc. says it could sell one of its mortgage insurance businesses in Canada or Australia if it has trouble getting a term loan.
The Richmond, Virginia-based insurer talks about its ideas for raising cash in 2017 annual financial report it filed earlier this week with the U.S. Securities and Exchange Commission.
A copy of the filing is available here.
Genworth, which has been a major seller of life insurance, annuities and long-term care insurance (LTCI) as well as of mortgage insurance, has $600 million in debt coming due in May, $400 million coming due in 2020, and $1.1 billion coming due in 201.
In recent years, the mortgage insurance businesses have written much more new business than the U.S. life, annuity and LTCI businesses.
Originally, Genworth was hoping to use financing from its would-be buyer, China Oceanwide Holdings Group Co. Ltd., to handle the debt payments due in May. Regulators in Delaware, and at the Committee on Foreign Investment in the United States, have had questions about the China Oceanwide deal. Genworth has been unable to stick to its original deal completion schedule and get cash from China Oceanwide.
Genworth has talked in recent weeks about handling the May debt payment bills by using the value of its mortgage insurance subsidiaries as collateral for borrowing $450 million.
In the new SEC filing, Genworth says it now hopes to get a $400 million term loan from a syndicate, or group, of lenders.