Essent Group Offers 11,000,000 Common Shares

May 28, 2020 | 0 Comments

Essent Group has commenced a public offering in which it is offering 11,000,000 common shares. The underwriters will have the option to purchase up to an aggregate of 1,650,000 additional common shares from the Company.

“The Company intends to use the net proceeds from the Offering for general corporate purposes, which may include [i] capital contributions to support the Company’s insurance subsidiaries, and [ii] paying down borrowings under the Company’s lines of credit,” a spokesperson said.

“The offering is concurrent with the Company’s addition to the S&P MidCap 400 Index, which will become effective prior to the open of trading on Monday, June 1, 2020. Index funds whose portfolios are primarily based on stocks included in the S&P MidCap 400 Index may be required to purchase shares as a result of the inclusion of the Company’s common shares in the index. The offering is intended to be marketed to these index funds and to other investors, including non-index active investors. A portion of the total shares offered may be allocated to index funds.”

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