Not for Distribution to U.S. Wire Services or for Dissemination in the U.S.
TORONTO, June 29 /CNW/ - Genworth MI Canada Inc. announced today that it
has entered into an underwriting agreement for the initial public offering of
44.7 million common shares of Genworth MI Canada at a price of $19.00 per
share. The closing is scheduled for July 7, 2009, subject to customary closing
conditions, after which the shares of Genworth MI Canada will begin trading on
the Toronto Stock Exchange under the symbol "MIC".
The IPO will generate total gross proceeds of approximately $850 million.
Of the 44.7 million common shares being offered, 5.1 million shares are being
sold by Genworth MI Canada, and 39.6 million shares are being sold by Genworth
Financial, Genworth MI Canada's parent company. Genworth MI Canada will
receive proceeds of approximately $97 million, to be used to retire all
outstanding debt and further enhance its well-capitalized financial position.
The majority of the proceeds, approximately $753 million, will be received by
Genworth Financial. Based on the initial offering price, Genworth MI Canada
would have a market capitalization of approximately $2.2 billion.
Genworth Financial has granted the underwriters of the offering an
option, exercisable for a period of 30 days following closing, to purchase up
to 6.7 million additional common shares at a price of $19.00 per share, to
cover over-allotments, if any. If this option is exercised in full, the
transaction would generate additional proceeds to Genworth Financial of $127
million, and Genworth would have a 56% percent ownership interest in Genworth
MI Canada Inc.
CIBC World Markets Inc., Goldman Sachs Canada Inc., and Scotia Capital
Inc. are the joint book-runners and co-lead managers for the offering.
In Canada, the offering is being made only by prospectus. The prospectus
contains important detailed information about the securities being offered.
Copies of the prospectus may be obtained from any of the joint book runners
and co-lead managers referred to above. Investors should read the prospectus
before making an investment decision.
This press release is not an offer to sell, or a solicitation of an offer
to buy, any securities. The securities referred to in this press release have
not been and will not be registered under the U.S. Securities Act of 1933 and
may not be offered or sold in the United States except pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933.
About Genworth MI Canada
Genworth MI Canada Inc., through its subsidiary, Genworth Financial
Mortgage Insurance Company Canada, has been the leading Canadian private
residential mortgage insurer since 1995. Known as "The Homeownership Company,"
it provides default mortgage insurance to Canadian residential mortgage
lenders that enables low down payment borrowers to own a home more affordably
and stay in their homes during difficult financial times. Genworth MI Canada
combines technological and service excellence with risk management expertise
to deliver innovation to the mortgage marketplace. As of March 31, 2009,
Genworth MI Canada had $5.0 billion in total assets and $2.2 billion in
shareholders' equity. Based in Oakville, Ontario, the Company employs
approximately 265 people across Canada.
Additional information about Genworth MI Canada is available at
www.genworth.ca.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements. These
forward-looking statements include, but are not limited to our plans,
objectives, expectations and intentions and other statements contained in this
release that are not historical facts as well as statements identified by
words such as expects, anticipates, intends, plans, believes, seeks,
estimates, or words of similar meaning. These statements are based on our
current beliefs or expectations and are inherently subject to significant
uncertainties and changes in circumstances, many of which are beyond our
control. Actual results may differ materially from these expectations due to
changes in global political, economic, business, competitive, market and
regulatory factors. The company undertakes no obligation to publicly update
any forward-looking statement, whether as a result of new information, future
developments or otherwise.
For further information:
Media - Anita DiPaolo-Booth, (905) 287-5394,
Anita.dipaolobooth@genworth.com;
Investors - Alicia Charity, (905) 287-5482,
alicia.charity@genworth.com