The PMI Group, Inc. Announces Concurrent Offerings of Common Stock and Convertible Senior Notes
WALNUT CREEK, Calif., April 25 /PRNewswire-FirstCall/ -- The PMI Group, Inc. (NYSE: PMI) today announced that it intends to offer, subject to market and other considerations, common stock and convertible senior notes for total aggregate gross proceeds of approximately $600 million.
PMI intends to offer, subject to market and other conditions, $400 million of its common stock and $200 million in aggregate principal amount of its convertible senior notes due 2020. The convertible senior notes will be convertible into cash, shares of PMI's common stock or a combination thereof at PMI's option.
PMI intends to grant to the underwriters a 30day option to purchase up to an additional 15% of the number of shares offered and an option to purchase an additional 15% of the aggregate principal amount of the convertible senior notes.
The closing of each offering is contingent on the closing of the other.
Credit Suisse Securities (USA) LLC and BofA Merrill Lynch are acting as joint book-running managers for both offerings and Dowling & Partners Securities, LLC is acting as co-manager of both offerings.
PMI intends to use $75 million of the aggregate net proceeds from these offerings to pay a portion of its outstanding indebtedness under its credit facility and to use $35 million to $40 million of the aggregate net proceeds from these offerings for working capital and general corporate purposes. PMI expects to contribute the remaining net proceeds from these offerings to PMI Mortgage Insurance Co., PMI's principal operating subsidiary, with an amount equal to the gross proceeds from the convertible notes offering to be contributed in the form of a surplus note to be issued by PMI Mortgage Insurance Co. to PMI and the remaining amount to be contributed in the form of a contribution to capital. PMI expects that PMI Mortgage Insurance Co. will use such amounts for working capital and general corporate purposes.
PMI has filed a registration statement with the Securities and Exchange Commission (the "SEC") for the common stock and convertible senior notes offerings. Before you invest, you should read the applicable preliminary prospectus supplement and the accompanying prospectus for more complete information about PMI and these offerings. When available, you may obtain these documents for free by visiting the SEC website at www.sec.gov. In addition, when available, a copy of the preliminary prospectus supplement and accompanying prospectus for the offerings may be obtained from Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, NY 10010 or by calling toll free at (800) 221-1037; or from BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080, Attn: Preliminary Prospectus Department or email [email protected].
This press release is neither an offer to sell nor a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About The PMI Group, Inc.
The PMI Group, Inc. (NYSE: PMI), headquartered in Walnut Creek, CA, provides credit enhancement solutions that expand homeownership while supporting our customers and the communities they serve. Through its wholly and partially owned subsidiaries, PMI offers residential mortgage insurance and credit enhancement products.
Cautionary Statement: Statements in this press release that are not historical facts, or that relate to future plans, events or performance are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including those related to PMI's ability to successfully complete the offerings of securities contemplated in this press release. Risks and uncertainties related to PMI and its business are discussed in our SEC filings, including in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2009, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010. We undertake no obligation to update forward-looking statements.
SOURCE The PMI Group, Inc.
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