MGIC Floats New Stock and Convertible Notes

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MGIC Investment has launched new issues of stock and convertible notes. In a pair of public offerings, the company floated 135 million shares of common stock and $350 million aggregate principal amount of the notes, which come due in 2020. The company said it aims to grant the underwriters a 30-day option to buy as much as an additional 15% of the total number of shares, and up to an additional $50 million aggregate principal amount of the notes.

MGIC said it will use the net proceeds for "general corporate purposes," hinting strongly that much of this would be concentrated on widening the capital base of its subsidiaries, and on debt servicing.

Goldman Sachs is the sole book runner for both issues.

The article MGIC Floats New Stock and Convertible Notes originally appeared on Fool.com.

Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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