(Source: PRNewswire-FirstCall)
WALNUT CREEK, Calif., May 29 /PRNewswire-FirstCall/ -- The PMI Group, Inc. (the "Company") today announced that it has satisfied all conditions precedent necessary for the Amended and Restated Credit Agreement (the "Amended Agreement") to become effective and replace the existing Revolving Credit Agreement in its entirety.
As previously reported on May 8, 2009, the Amended Agreement reduces the size of the credit facility to $125 million and eliminates certain financial covenants and events of default previously contained in the facility, including the elimination of the maximum total debt to total capitalization percentage and maximum risk to capital ratio covenants, and the elimination of the financial strength ratings event of default. The Amended Agreement also revises the minimum Adjusted Consolidated Net Worth (as defined in the credit facility) requirement to be not less than $1.2 billion through June 30, 2009, $700 million from July 1, 2009 through December 31, 2009, and $500 million from January 1, 2010 through the maturity date of the facility of October 24, 2011.
Commenting on the Amended Agreement, Donald P. Lofe, Jr., PMI's Chief Financial Officer and Chief Administrative Officer, said, "We are pleased to have satisfied the conditions precedent relating to the Amended Agreement and to continue our strong relationship with our syndicate of lenders, despite a difficult credit market. We appreciate the work of the Administrative Agent and all the respective lenders within the credit facility to secure this Amended Agreement to meet the needs of the Company. This Revolving Credit Agreement provides additional financial flexibility for PMI's holding company through its scheduled maturity in October, 2011."
Bank of America, N.A. is the Administrative Agent for the facility. The lender group remains unchanged and includes Bank of America, N.A, Citibank N.A., Sun Trust Bank N.A., Wachovia Bank, National Association, Goldman Sachs Lending Partners, LLC, JP Morgan Chase Bank, N.A. and The Bank of New York Mellon, N.A.
The Form of the Amended and Restated Credit Agreement can be found as an exhibit to the Form 10-Q that the Company filed with the Securities and Exchange Commission for the quarter ended March 31, 2009.
About The PMI Group, Inc.
The PMI Group, Inc. , headquartered in Walnut Creek, CA provides credit enhancement solutions that expand homeownership while supporting our customers and the communities they serve. Through its wholly and partially owned subsidiaries, PMI offers residential mortgage insurance and credit enhancement products. For more information: http://www.pmi-us.com/.
