UPDATE 2-Mortgage insurer PMI looks to raise capital, shrs jump

lunes 16 de marzo de 2009 16:30 CET

* Looks to enhance capital

* Says has sufficient liquidity to repay credit facility

* Q4 loss $2.22/shr from cont ops

* Q4 consolidated premiums earned $184.1 mln

* Shares jump 43 percent (Recasts; adds details from filing, analysts' comments, background, share movement)

By Anurag Kotoky

BANGALORE, March 16 (Reuters) - Mortgage insurer PMI Group Inc PMI.N said it is exploring alternatives to enhance liquidity and capital, including potentially obtaining capital or other relief under U.S. Treasury's Financial Stability Plan, sending its shares up as much as 43 percent.

In its latest filing with the U.S. Securities and Exchange Commission, the company said it is actively engaged in discussions with its lenders to amend the financial covenants and events of default. [ID:nWNAB4289]

"We currently have sufficient liquidity at our holding company to repay the credit facility in the event we no longer comply with its terms or in the event of a potential cross-default under our senior notes," PMI said in the filing.   Continuación...