Enact Holdings secures new $435 million revolving credit facility

Enact Holdings, Inc. (NASDAQ:ACT), a $5.6 billion market cap company with a strong financial health rating according to InvestingPro, announced Wednesday that it has entered into a new revolving credit facility with an initial aggregate principal amount of $435 million, according to a press release statement and a recent SEC filing. The agreement, signed on September 30, 2025, involves JPMorgan Chase Bank, N.A. as administrative agent and multiple lenders. The company’s robust financial position is reflected in its impressive 13% return on equity and conservative debt-to-equity ratio of 0.14.

The new credit facility includes a $217.5 million accordion feature, allowing for potential increases in borrowing capacity. As of the closing date, the facility remained undrawn. The agreement replaces Enact’s previous $200 million revolving credit facility, which was terminated on September 30, 2025.

Borrowings under the new facility will bear interest based on either the Term SOFR rate plus 0.10% and a margin tied to Enact’s senior unsecured rating, or the ABR rate plus an applicable margin. The company will pay a commitment fee, currently set at 0.175%, on any unused portion of the facility, also determined by its senior unsecured rating.

The five-year revolving facility matures on September 30, 2030. Enact may voluntarily repay loans or terminate commitments at any time without penalty. The facility is unsecured and is not backed by the company’s assets or stock.

The credit agreement includes covenants restricting additional indebtedness at non-guarantor subsidiaries, incurrence of certain liens, and mergers or consolidations, subject to exceptions. Enact is required to maintain a minimum consolidated net worth, a maximum debt-to-total capitalization ratio of 0.35 to 1.00, and compliance with private mortgage insurer eligibility requirements set by the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. Trading at a P/E ratio of 8.58 and showing strong operational metrics, InvestingPro’s Fair Value analysis suggests the stock is currently undervalued.

If a default occurs and continues, the administrative agent may accelerate repayment of all outstanding amounts under the agreement.

This summary is based solely on information provided in the company’s SEC filing and accompanying press release statement.

In other recent news, Enact Holdings , Inc. has established a new $435 million five-year senior unsecured revolving credit facility, replacing its previous $200 million facility. This development significantly increases the company’s borrowing capacity and extends its maturity profile, becoming effective on September 30, 2025. Additionally, Enact Holdings announced that its flagship entity, Enact Mortgage Insurance Corporation, has entered into a quota share reinsurance agreement for 2027 coverage. Under this agreement, Enact will cede approximately 34% of a portion of expected new insurance written for the year 2027. The reinsurance coverage is secured from a panel of reinsurers, each carrying strong ratings from agencies like Standard & Poor’s, A.M. Best, and Moody’s. These recent developments reflect Enact’s strategic financial maneuvers to enhance its operational framework and risk management strategies.

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