Sagen MI Canada Inc. to Issue $300 Million of Unsecured Debentures

/THIS PRESS RELEASE MAY NOT BE PUBLISHED, DISTRIBUTED OR TRANSMITTED IN OR INTO THE UNITED STATES OR OVER UNITED STATES WIRE OR NEWS SERVICES./

TORONTO, March 2, 2021 /CNW/ - Sagen MI Canada Inc. (TSX: MIC) (the "Company") announced today that it has agreed to issue $300 million of debentures (the "Debentures"). The Debentures will be senior direct, unsecured and unsubordinated obligations of the Company and will rank equally and rateably with all other unsecured and unsubordinated indebtedness of the Company. The Debentures are to be offered by a syndicate of agents including TD Securities Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc. and RBC Dominion Securities Inc.

The Debentures will bear interest at a fixed annual rate of 3.261%, payable semi-annually in equal instalments in arrears on March 5 and September 5 in each year, commencing on September 5, 2021, until maturity on March 5, 2031, unless redeemed at an earlier date. The Debentures are expected to be assigned a rating of A (high) by DBRS and a rating of BBB+ by S&P. The Company intends to use the net proceeds of the offering to strengthen the Company's capital base, for distributions to shareholders (subject to the completion of the previously announced plan of arrangement pursuant to which Brookfield Business Partners L.P., together with certain of its affiliates and institutional partners ("Brookfield"), will acquire all of the outstanding common shares of the Company not already owned by Brookfield), and/or for general corporate purposes.

The Debentures are expected to be issued on March 5, 2021. Details of the offering will be set out in a prospectus supplement to the Company's short form base shelf prospectus dated January 12, 2021, which the Company intends to file in Canada and which will be available on SEDAR at www.sedar.com.

This press release does not constitute an offer to sell or a solicitation to buy securities in any jurisdiction. The Debentures have not been and will not be registered in the United States under the Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States or to U.S. Persons absent registration or applicable exemption from the registration requirement of such Act. This press release does not constitute an offer to sell or a solicitation to buy the Debentures in the United States.

About Sagen MI Canada Inc.

Sagen MI Canada Inc. (TSX: MIC), operating through its subsidiary, Genworth Financial Mortgage Insurance Company Canada doing business as Sagen^TM, is the largest private sector residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. The Company differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For more than two decades, the Company has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at December 31, 2020, the Company had $7.5 billion total assets and $3.9 billion shareholders' equity. Find out more at www.sagen.ca.

Caution regarding forward-looking information and statements

Certain statements made in this news release contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company are intended to identify forward-looking statements. Specific forward-looking statements in this document include, but are not limited to, statements with respect to the Company's expectations regarding future developments in connection with the offering of Debentures, and other statements contained in this release that are not historical facts.

Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. The Company cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. The Company does not undertake to update any forward-looking statements, except to the extent required by applicable securities laws.

For further information:
Investors - Aaron Williams, 905-287-5504 aaron.williams@sagen.ca;
Media - Susan Carter, 905-287-5520 susan.carter@sagen.ca

___________________________
Sagen is a trademark owned by Sagen MI Canada Inc.

SOURCE Sagen MI Canada Inc.