MGIC Floats New Stock and Convertible Notes
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.
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