MGIC Investment Corporation announced on Tuesday that it has commenced a public offering of 135 million shares of its common stock and $350 million aggregate principal amount of its convertible senior notes due 2020. The convertible senior notes will be convertible into shares of the Company’s common stock.
The Company intends to grant to the underwriters a 30-day option to purchase up to an additional 15 percent of the number of shares offered and an option to purchase up to an additional $50 million aggregate principal amount of the convertible senior notes.
Neither the offering of the common stock nor the offering of convertible senior notes will be contingent on the completion of the other offering.
The Company intends to use the net proceeds from the offerings for its general corporate purposes, which may include increasing the capital of the Company’s insurance subsidiary Mortgage Guaranty Insurance Corporation (MGIC) and other subsidiaries of the Company, and improving liquidity by providing funds for debt service.
Goldman, Sachs & Co. will act as sole book-running manager for both offerings.
Source: MGIC Investment Corporation