NMI Holdings, Inc. Increases Size of Offering and Prices $400 million Senior Secured Notes Due 2025

EMERYVILLE, Calif., June 05, 2020 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) (the “Company”) announced today that it priced its private offering of senior secured notes due 2025 (the “Notes”) and increased the aggregate principal amount of the offering to $400,000,000.  The offering is expected to close on June 19, 2020, subject to customary closing conditions.  

The Notes will be issued at a price equal to 100% of their principal amount and will pay interest semi-annually in arrears at a rate of 7.375% per year.  The Notes will mature on June 1, 2025. 

The Company intends to use the net proceeds of the offering to retire its existing $147 million term loan and for general corporate purposes, including potential capital contributions to support the growth of new business production and operations of its subsidiaries. 

The Notes will be unsubordinated obligations of the Company, secured (subject to permitted liens and certain other exceptions) by a first priority lien on the collateral that secures the Company’s obligations under its existing secured credit facility.  The Notes will be fully and unconditionally guaranteed on a first priority secured basis (subject to permitted liens and certain other exceptions) at closing by NMI Services, Inc.  

The Notes are being offered in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to non-U.S. persons in accordance with Regulation S under the Securities Act.  The Notes have not been registered under the Securities Act, or any state securities laws, and unless so registered, 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 and applicable state securities laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful.  Any offers of the Notes will be made only by means of a private offering memorandum.

About NMI Holdings, Inc.
NMI Holdings, Inc. (NASDAQ: NMIH), is the parent company of National Mortgage Insurance Corporation (National MI), a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower's default. To learn more, please visit www.nationalmi.com.