Brookfield Business Partners acquires control of Genworth Canada

Date Closed

December 12, 2019

Lead Office

Toronto

Value

2.40 Billion CAD

On December 12, 2019, Brookfield Business Partners L.P. completed the acquisition of a 57% controlling interest in Genworth MI Canada Inc. (“Genworth”) for an aggregate purchase price of approximately C$2.4 billion. Following the acquisition, Genworth entered into a Revolving and Term Credit Agreement with The Bank of Nova Scotia, as a lead arranger and as the administrative agent, and a syndicate of lenders, providing for revolving and term credit facilities in the amount of up to C$500 million. Concurrently with the closing of the Revolving and Term Credit Agreement, Genworth closed a Bridge Credit Agreement with Canadian Imperial Bank of Commerce, as a lead arranger and as the administrative agent, and a syndicate of lenders, providing for a bridge credit facility in the amount of C$200 million.

Brookfield Business Partners is a business services and industrials company focused on owning and operating high-quality businesses.

Genworth is the largest private sector residential mortgage insurer in Canada, providing mortgage default insurance to Canadian residential mortgage lenders.

McCarthy Tétrault advised both administrative agents and both lending syndicates on all aspects of both refinancings provided to Genworth with a team led by Richard Higa that included William Lee, Robert Nearing, Ana Badour and Jonathan Grant.

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