Some holders of notes issued by Genworth Financial Inc. may prefer to keep their notes as is than to get cash up front.
The Richmond, Virginia-based insurer said today that it has ended a “consent solicitation,” or effort to pay the note holders for permission to change the terms of the notes.
Genworth is ending the consent solicitation because too few note holders have agreed to accept the offer, the company said.
Genworth announced the consent solicitation July 24.
Genworth said in the consent solicitation statement that it would pay holders of $3.2 billion of its notes $2.50 per $1,000 of principal, or a total of $8 million, for their consent.
Genworth had asked the note holders to let it sell or transfer its stake in any mortgage insurance business located outside the United States without treating the sale as the sale of all, or substantially all, of the company’s assets, as long as at least 80% of the net cash proceeds from any transaction would be used to pay down Genworth’s debts.
Consents were due at 5 p.m. Eastern Daylight Time Aug. 9.
“As of the expiration time, the company had not received the consent of holders of at least a majority in aggregate principal amount outstanding of certain series of notes outstanding under the Indentures,” Genworth said in the announcement of the solicitation termination.
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Genworth has large closed blocks of life insurance and annuities.