NMI Holdings, the parent company of National Mortgage Insurance Corporation, just took out a $150 million senior secured loan.

The mortgage insurer said it needs the money not just to support the continued growth of its insurance-in-force but also to ensure compliance both at state and national levels.

In an official statement, Bradley Shuster, chairman and CEO of National MI, said: "Our recent growth in new insurance written, insurance-in-force, and risk-in-force has surpassed our expectations, and is driving the need for more capital to comply with the risk-to-capital frameworks of both state and federal regulatory agencies."

"This opportunistic transaction supports continuing compliance with these regulatory requirements, significantly reduces our cost of capital, and when combined with current capital resources, provides capacity to write approximately $20 billion of high-quality new mortgage insurance," he added.

The statement continued:

The majority of the net proceeds of the transaction are expected to be contributed to the company's primary insurance subsidiary to support continued growth of insurance-in-force.  This expected capital contribution also will enable the company to comply with the financial requirements of the GSEs' Private Mortgage Insurer Eligibility Requirements as of the Dec. 31, 2015 compliance date.

JP Morgan Securities is serving as sole lead arranger and sole bookrunner for the transaction and JPMorgan Chase Bank, is serving as administrative agent.

The three-year Term Loan B bears interest at a variable rate of LIBOR+7.5% per annum, with a LIBOR floor of 1% per annum.  The credit agreement, which will be filed with the Securities and Exchange Commission as an exhibit to a Current Report on Form 8-K, includes various covenants and conditions customary for an agreement of this type.