PMI Says Private Equity Investor Weighs Taking Stake
PMI Group Inc. (PPMIQ), the mortgage insurer that filed for bankruptcy protection last year, said a “well- known private equity investor” expressed interest in injecting capital in the company in exchange for a stake.
The insurer is consulting with a committee of unsecured creditors about the proposal, the Walnut Creek, California-based company said today in a regulatory filing.
A rebound in the housing market is fueling investor interest in mortgage insurance after companies like PMI and Triad Guaranty Inc. were hobbled by losses in the real estate slump. NMI Holdings Inc. raised $550 million in April to open a mortgage insurer, and Essent Guaranty Inc., backed by Goldman Sachs Group Inc. and JPMorgan Chase & Co., bought Triad software and other assets in 2009.
The expression of private equity interest “is not binding and there can be no assurance that any definitive agreement for an investment will be reached or that any transaction will be completed,” the company said in the filing, which didn’t identify who was weighing the capital injection. Calls to PMI seeking comment weren’t returned.
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