Borrowings

6 Months Ended

Jun. 30, 2022

Borrowings

(9) Borrowings

(a) Short-Term Borrowings

Enact Holdings’ Revolving Credit Facility

On June 30, 2022, Enact Holdings entered into a credit agreement with a syndicate of lenders that provides for a five-year unsecured revolving credit facility in the initial aggregate principal amount of $200 million, including the ability for Enact Holdings to increase the commitments under the credit facility on an uncommitted basis, by an additional aggregate principal amount of up to $100 million. Any borrowings under Enact Holdings’ credit facility will bear interest at a per annum rate equal to a floating rate tied to a standard short-term borrowing index selected at Enact Holdings’ option, plus an applicable margin, pursuant to the terms of the credit agreement. The applicable margin is based on Enact Holdings’ ratings established by certain debt rating agencies for its outstanding debt. Enact Holdings’ credit facility includes customary representations, warranties, covenants, terms and conditions. As of June 30, 2022, Enact Holdings was in compliance with all covenants and the credit facility remained undrawn.

(b) Long-Term Borrowings

The following table sets forth total long-term borrowings as of the dates indicated:

(Amounts in millions)	June 30, 2022			December 31, 2021
Genworth Holdings (1)
4.80% Senior Notes, due 2024	$	152		$	282
6.50% Senior Notes, due 2034		298			298
Floating Rate Junior Subordinated Notes, due 2066		598			598
Subtotal		1,048			1,178
Bond consent fees		(11	)		(12	)
Deferred borrowing charges		(6	)		(7	)
Total Genworth Holdings		1,031			1,159
Enact Holdings
6.50% Senior Notes, due 2025 (2)		750			750
Deferred borrowing charges		(8	)		(10	)
Total Enact Holdings		742			740
Total	$	1,773		$	1,899

(1) Genworth Holdings has the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread.

(2) Senior notes issued by Enact Holdings, who has the option to redeem the notes in whole or in part at any time prior to February 15, 2025, by paying a make-whole premium plus accrued and unpaid interest.

In the first and second quarters of 2022, Genworth Holdings repurchased $82 million and $48 million principal amount, respectively, of its 4.80% senior notes due in 2024 for a pre-tax loss of $3 million and $1 million, respectively, and paid accrued interest thereon.