MGIC Announces Pricing of Common Stock and Convertible Notes Offerings
MILWAUKEE, April 21 /PRNewswire-FirstCall/ -- MGIC Investment Corporation (NYSE: MTG) ("MGIC") today announced that it priced the public offering and sale of approximately 65.1 million shares of its common stock at a price of $10.75 per share for gross proceeds of approximately $700 million. The Company granted to the underwriters a 30-day option to purchase up to approximately an additional 9.8 million shares.
In a concurrent offering, the Company priced $300 million in aggregate principal amount of 5% convertible senior notes due 2017 (the "notes"). The Company granted the underwriters a 30-day option to purchase up to an additional $45 million in aggregate principal amount of notes. The notes will bear interest at a rate of 5% per year, payable semiannually in arrears on May 1 and November 1 of each year, beginning November 1, 2010. The notes will mature on May 1, 2017. The notes will be convertible at the option of the holder at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. The conversion rate will initially be 74.4186 shares of common stock per $1,000 principal amount of notes (equivalent to a conversion price of approximately $13.44 per share of common stock), subject to adjustment. Upon conversion, the Company will deliver a number of shares equal to the aggregate principal amount of the notes to be converted divided by $1,000, multiplied by the then applicable conversion rate.
The Company intends to use the net proceeds from the offerings to provide funds to repay at maturity or repurchase prior to maturity the $78,409,000 outstanding principal amount of its 5.625% Senior Notes due 2011 and for its general corporate purposes, which may include improving liquidity by providing funds for debt service and increasing the capital of MGIC Investment Corporation's primary insurance subsidiary, Mortgage Guaranty Insurance Corporation (MGIC) and other subsidiaries.
Goldman, Sachs & Co. is acting as sole book-running manager for both offerings.
The Company has filed a registration statement (including a prospectus and related preliminary prospectus supplements for each of the common stock and convertible senior notes offerings) with the Securities and Exchange Commission (the "SEC") for the offerings to which this communication relates. Before you invest, you should read the applicable preliminary prospectus supplement and the accompanying prospectus for more complete information about the Company and these offerings. You may get these documents for free by visiting the SEC website at www.sec.gov. Alternatively, copies may be obtained from Goldman, Sachs & Co., at 200 West Street, New York, NY 10282, Attention: Prospectus Department, by telephone at 1-866-471-2526 or by emailing [email protected].
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The Company is not undertaking any obligation to update any information in this press release regarding its capital raising plans. No investor should rely on the fact that such information is current at any time other than the time at which this press release was issued.
SOURCE MGIC Investment Corporation
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