EMERYVILLE, Calif., July 27, 2020 (GLOBE NEWSWIRE) — NMI Holdings, Inc. (Nasdaq: NMIH) today announced the pricing of $322 million aggregate principal amount of 10-year mortgage insurance-linked notes issued by Oaktown Re IV Ltd. (Oaktown Re IV), a newly formed Bermuda special-purpose insurer. The notes were offered for sale to eligible third-party investors in an unregistered private offering. Oaktown Re IV is not a subsidiary or affiliate of NMIH. The transaction is expected to close on July 30, 2020, subject to customary conditions.
In connection with the transaction, NMIH’s wholly owned subsidiary National Mortgage Insurance Corporation (National MI) will receive $322 million of fully collateralized excess of loss reinsurance protection from Oaktown Re IV, covering an existing portfolio of mortgage insurance policies written from July 2019 through March 2020. The excess of loss reinsurance coverage provides National MI protection for aggregate losses on subject loans beginning at a 2.50% cumulative claim rate threshold and continuing up to an eventual 8.00% 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 MI
National Mortgage Insurance Corporation (National MI), a subsidiary of NMI Holdings, Inc. (NASDAQ: NMIH), is 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.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the U.S. Private Securities Litigation Reform Act of 1995 (the “PSLRA”). The PSLRA provides a “safe harbor” for any…