Genworth Gets $450 Million Term Loan

The company warned in February, in its annual financial report for 2017, that it might be able to borrow only $400 million, and that it was not certain that it could get the term loan.

The new term loan has a 5-year term and will pay an annual interest rate equal to 4.5 percentage points over the London Interbank Offered Rate, or LIBOR.

Lenders who provide cash through a "senior" loan can get paid before some other creditors if the borrower runs into problems with meeting obligations.

A "secured" loan is a loan backed by collateral, rather than by a general assumption that the borrower will make its payments. Genworth did not say in the announcement what collateral it used to secure the new loan.

China Oceanwide Holdings Group Co. Ltd. has been trying to acquire Genworth for more than a year. An affiliate provided $60 million in financing through the term loan syndicate. The China Oceanwide affiliate was the lead investor in the syndicate, Genworth says.

— Read 5 Things Genworth Executives Told Wall Streeton ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on Facebook and Twitter.