Genworth Mortgage driving by with $750 million five-year bullet notes; initial talk 7%-7¼%

By Paul A. Harris

Portland, Ore., Aug. 19 – Genworth Mortgage Holdings, Inc. plans to price a $750 million offering of five-year senior notes in a Wednesday drive-by following a late morning conference call with investors, according to market sources.

Initial talk is 7% to 7¼%, according to a trader, who added that the word in the market is that the deal is being driven by as much as $1.25 billion of reverse inquiry.

Goldman Sachs & Co. LLC is the left bookrunner. Barclays is the joint bookrunner.

BofA Securities Inc. and J.P. Morgan Securities LLC are the co-managers.

The Rule 144A and Regulation S for life notes feature a par call six months prior to maturity but are otherwise non-callable.

The issuer intends to initially retain $300 million of proceeds for general corporate purposes, including interest payments on the notes, and potential capital contributions to insurance subsidiary GMICO, with the remainder to be distributed to stockholder GHI upon the closing of the notes offering.

Genworth Mortgage is a Richmond, Va.-based mortgage insurance company, an indirect subsidiary of Genworth Financial Insurance Co.

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