Essent Group Ltd. (NYSE: ESNT) announced today that its wholly-owned subsidiary, Essent Guaranty, Inc., has obtained $399.2 million of fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written in September 2019 through July 2020 from Radnor Re 2020-2 Ltd., a newly formed Bermuda special purpose insurer. Radnor Re 2020-2 Ltd. is not a subsidiary or an affiliate of Essent Group Ltd.
Radnor Re 2020-2 Ltd. has funded its reinsurance obligations through the issuance of five classes of mortgage insurance-linked notes, with 10-year legal maturities, to eligible third party capital markets investors in an unregistered private offering.
The mortgage insurance-linked notes issued by Radnor Re 2020-2 Ltd. consist of the following five classes:
$79,832,000 Class M-1A Notes with an initial interest rate of one-month LIBOR plus 315 basis points;
$93,137,000 Class M-1B Notes with an initial interest rate of one-month LIBOR plus 400 basis points;
$93,137,000 Class M-1C