Genworth Financial Inc. has filed a copy of its $450 million term loan credit agreement with the U.S. Securities and Exchange Commission.
The Richmond, Virginia-based insurer said in February that it hoped to use its stake in its Canadian mortgage insurance as collateral for a $450 million senior term loan. The company gave little information about the nature of the loan it actually received last week, when it announced that it had succeeded at getting the loan from a group of investors.
(Related: Genworth Gets $450 Million Term Loan)
Genworth has been a major issuer of life insurance, annuities and long-term care insurance (LTCI) in the United States, and it continues to be a major player in the U.S., Canadian and Australian mortgage insurance markets.
The credit agreement shows that Genworth did use its stake in the Canadian mortgage insurance operation as the collateral.
The agreement caps Genworth’s maximum ratio of debt to capital at 35%, and it requires the Canadian mortgage insurance operation to have at least 155% of the minimum required level of capital.
The maximum ratio of the loan amount to the collateral value is 50%.
The agreement does not show what the current ratios are.