Can Genworth Financial Inc (NYSE:GNW) Turnaround?

Posted by admin September 27, 2013 0 Comment 1441 views

Genworth Financial, Inc (NYSE:GNW), and Genworth Holdings, Inc, the company’s 100% – owned subsidiary announced that they have entered into a credit-agreement. This agreement provides Genworth Holdings, Inc. with a 3-year, $300M, revolving, multi-currency credit facility. There will be a sublimit of $100M for its letters-of-credit. The proceeds of these loans will be used for general corporate purposes and as working-capital. Obligations under this agreement are not secured. This means that Genworth Holdings, Inc.’s obligation payments are unconditionally and entirely guaranteed by Genworth Financial, Inc (NYSE: GNW).

The CFO speaks

The executive vice-president and Chief Financial Officer, Martin P. Klein said that they are happy to enter into the credit agreement as it is an indication of one more milestone in the company’s plan for the turnaround of the company. Now that they have access to this credit-facility, they have additional financial flexibility and have also added some muscle to their balance sheet.

Thursdays trading

In Thursday’s trading, Genworth Financial Inc (NYSE:GNW) rose by 2.04%. The opening price of the company’s shares was $12.80 which climbed to an intraday high of $13.13 and dropped to a close of $12.99. Close to 11.77 million shares were traded on Thursday and an average volume of 5.67 million shares was traded over a 30 day period. The 52-week low of the shares is $5.07 and the 52-week high is $13.79. Genworth Financial Inc (NYSE:GNW) has a market capitalization of 6.41 billion.

The company

Genworth Financial Inc (NYSE:GNW) is a financial-security company. It provides insurance, financial, investment solutions and wealth management. As of 31 December 2011, the company had over 15M customers and a presence in over 25 countries. An investment solution operates in Mortgage Insurance, Insurance, Runoff and Corporate. Its Mortgage Insurance Division encompasses business segments like U.S. Mortgage Insurance and International Mortgage Insurance.

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