Essent Group has priced a $267 million secondary public offering of its common stock.
The mortgage insurance company based in Radnor, Pa., said in a press release that it plans to offer 12 million shares of common stock for $22.25 per share. Essent and a group of shareholders each are contributing half of the shares being sold.
The underwriters will also have 30 days to purchase an additional 1.8 million shares from the shareholders.
The company expects to receive net proceeds of approximately $127 million. Essent will not receive any proceeds from the sale of common shares by the shareholders, according to the release.
Essent’s portion of the net proceeds will be used for general corporate purposes, such as capital contributions to support the company’s insurance subsidiaries, the release said.
The company expects the offering to close on Nov. 25.
Goldman Sachs, JPMorgan Securities and B of A Merrill Lynch are joint book-running managers. The offerings co-managers are Dowling Partners Securities, Keefe, Bruyette Woods, and Wells Fargo Securities.