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Genworth Financial gets OK to enter term loan facility

Genworth Financial Inc. has received consent from Asia Pacific Global Capital Co. Ltd. to enter into a syndicated $450 million senior term loan facility to fund the repayment of its 6.515% senior notes due 2018.

According to an SEC filing, Genworth and Asia Pacific Global Capital, which is in the process of acquiring the company, also agreed to terminate the escrow agreement entered into when the merger agreement was executed, and to instruct the escrow agent to release all funds in the escrow account to Asia Pacific Global Capital.

The escrow account, which was initially funded by Asia Pacific Global Capital with $210 million, was established to secure the China Oceanwide Holdings Group Co. Ltd. unit's obligation to pay a termination fee to Genworth under specified circumstances, which were waived by the company, and to pay losses in the event that the Chinese company breached the terms of the merger agreement.

Both parties agreed that there had been no breach as of Feb. 23.

An affiliate of Asia Pacific Global Capital also entered into a commitment agreement to provide $110 million for the facility.