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Enact Holdings Inc. (Enact) today announced it entered into a five-year, $200 million senior unsecured revolving credit facility on June 30. The borrowings can be used for working capital needs and general corporate purposes, including capital contributions to Enact’s insurance subsidiaries.
“This new credit facility enhances our financial flexibility and bolsters our already strong balance sheet,” said Dean Mitchell, executive vice president and chief financial officer of Enact. “We are pleased with the terms of the facility which reflect our strong operating performance, credit profile and capital position.”
Borrowings under the credit facility will accrue interest at a floating rate tied to a standard short-term borrowing index plus an applicable margin, which is based on the company’s ratings and currently stands at 200 basis points. As of the closing date, no amounts have been borrowed under the credit facility.
The credit facility was entered into with five banks, led by JPMorgan Chase Bank N.A. as administrative agent and joint lead arranger, and Truist Bank as joint lead arranger, along with Goldman Sachs Bank USA, Barclays Bank PLC and Citibank N.A.
Enact, operating principally through its wholly owned subsidiary Enact Mortgage Insurance Corp. since 1981, is a U.S. private mortgage insurance provider headquartered in Raleigh, N.C.