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NMI Holdings, Inc. Announces Closing of $364 Million Insurance-Linked Notes Transaction
EMERYVILLE, Calif., Oct. 26, 2021 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today announced the closing of a $364 million mortgage
About this update from Nmi Holdings Inc
[{"type":"text","content":"EMERYVILLE, Calif., Oct. 26, 2021 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today announced the closing of a $364 million mortgage insurance-linked notes offering by Oaktown Re VII Ltd. (Oaktown Re VII), a newly formed Bermuda-based special-purpose reinsurance company. The mortgage insurance-linked notes issued by Oaktown Re VII have a 12.5-year legal maturity and consist of the following five classes: $126,468,000 Class M-1A Notes with an initial interest rate of one-month SOFR plus 1.60%$110,660,000 Class M-1B Notes with an initial interest rate of one-month SOFR plus 2.90%$55,329,000 Class M-1C Notes with an initial interest rate of one-month SOFR plus 3.35%$51,378,000 Class M-2 Notes with an initial interest rate of one-month SOFR plus 3.70%$19,761,000 Class B-1 Notes with an initial interest rate of one-month SOFR plus 4.40% Oaktown Re VII is not a subsidiary or affiliate of NMIH. In connection with the transaction, NMIH’s wholly owned subsidiary, National Mortgage Insurance Corporation (National MI), will receive $364 million of fully collateralized excess of loss reinsurance protection from Oaktown Re VII, covering an existing portfolio of mortgage insurance policies written primarily from April 1, 2021 through September 30, 2021. The excess of loss reinsurance coverage provides National MI protection for aggregate losses on subject loans beginning at a 1.85% cumulative claim rate threshold and continuing up to an eventual 7.45% aggregate detachment level. National MI expects to receive initial PMIERs credit for the portion of coverage attaching within the current risk-based required asset charge on subject loans and additional benefit in the future if the PMIERs requirement on subject loans increases, all subject to GSE approval. The securities described herein 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 absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the aforementioned securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom, such an offer, solicitation or sale would be unlawful. About National MINational Mortgage Insura...