Fairbanks Excluded as 'Designated' PMI Sub

The PMI Group Inc., Walnut Creek, Calif., has announced the approval of an amendment to the indenture for certain of its debt securities that excludes Fairbanks Capital Holding Corp. as a "designated subsidiary" of PMI.The company completed a consent solicitation involving the amendment, which changes the definition of a designated subsidiary in the indenture for its 2.50% senior convertible debentures due 2021 by excluding Fairbanks Capital Holding, its subsidiaries, and any of their successors. It also increases from 15% to 25% the percentage of consolidated assets a subsidiary must represent to constitute a designated subsidiary. "As a result of the amendment, any failure to pay indebtedness at maturity or default with respect to indebtedness for borrowed money by Fairbanks or any of its subsidiaries will not constitute events of default under the indenture," PMI said. PMI is a majority owner of the Salt Lake City-based Fairbanks Capital, which has been the target of lawsuits regarding its servicing practices and of reviews by the Department of Housing and Urban Development and the Federal Trade Commission.