EMERYVILLE, Calif. - NMI Holdings, Inc. (NASDAQ: NASDAQ:NMIH), a private mortgage insurance company, has announced the pricing of a $425 million public offering of senior unsecured notes with a 6.0% annual interest rate, due to mature on August 15, 2029.
The offering is set to close on May 21, 2024, subject to standard closing conditions. The company plans to use the proceeds to redeem its existing $400 million of 7.375% senior secured notes due in June 2025, with the remainder allocated for general corporate purposes.
In conjunction with this offering, NMI Holdings has also established a new $250 million five-year unsecured revolving credit facility. The syndicate of banks involved includes RBC Capital Markets, Bank of Montreal, Citibank, N.A., and Truist Bank, with additional commitments from Goldman Sachs Bank USA, Huntington National Bank, and U.S. Bank National Association. Currently, the revolver is undrawn, and the credit agreement includes typical covenants and conditions.
The notes are being offered under a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on the same day as the announcement. The offering relies on a prospectus supplement and accompanying prospectus, both of which are available on the SEC's website.
This financial move comes as part of NMI Holdings' strategy to manage its debt and strengthen its balance sheet. The company, through its subsidiary National Mortgage Insurance Corporation, provides mortgage insurance that enables homeownership for borrowers with low down payments while offering protection to lenders and investors against borrower defaults.
Potential investors are advised to read the prospectus supplement, the accompanying prospectus, and other related documents filed with the SEC before making investment decisions. Copies of these documents can be obtained from the joint book-running managers, which include RBC Capital Markets, LLC, Goldman Sachs & Co. LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., and Truist Securities, Inc.
This press release is intended for informational purposes only and does not represent an offer to sell or a solicitation of an offer to buy any security from the company. The information provided is based on a press release statement from NMI Holdings, Inc.
InvestingPro Insights
NMI Holdings, Inc. (NASDAQ: NMIH) has recently been in the news for its strategic financial moves, and investors are closely monitoring the company's performance metrics and market position.
According to InvestingPro data, NMIH has a market capitalization of $2.7 billion, reflecting its substantial size in the private mortgage insurance sector. The company is trading at a P/E ratio of 8.03, as of the last twelve months leading up to Q1 2024, which indicates that it may be undervalued relative to its earnings growth. This is supported by a PEG Ratio of 0.53 for the same period, suggesting potential for investment value when considering its earnings growth rate.
InvestingPro Tips for NMIH highlight that eight analysts have recently revised their earnings estimates upwards for the upcoming period, indicating positive sentiment about the company's future performance.
Moreover, the company has experienced a significant return over the last week, with a 9.07% price total return, which may catch the eye of investors seeking short-term gains. With analysts predicting profitability for the year and the company already profitable over the last twelve months, NMIH is positioning itself as an attractive investment opportunity.
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