MILWAUKEE, Aug. 2, 2016 /PRNewswire/ -- MGIC Investment
Corporation (NYSE: MTG) (the "Company") announced today that it
priced the public offering and sale of $425
million in aggregate principal amount of 5.750% senior notes
due 2023 (the "notes").
The notes will bear interest at a rate of 5.750% per year,
payable semi-annually, in arrears, on February 15 and August
15 of each year, beginning February
15, 2017. The notes will mature on August 15, 2023.
The Company intends to use a portion of the net proceeds from
this offering, together with, in certain cases, shares of its
common stock, to purchase approximately $292
million aggregate principal amount of the Company's
$500 million of outstanding 2%
Convertible Senior Notes due 2020 ("2020 Convertible Notes").
The Company also intends to use a portion of the net proceeds to
purchase shares of its common stock to offset the shares used as
partial consideration in the purchase of the 2020 Convertible
Notes. Any remaining proceeds, which the Company currently
expects to be approximately $53
million, will be added to the Company's funds available for
general corporate purposes and may be used to purchase additional
2020 Convertible Notes. The excess of the purchase price of
the 2020 Convertible Notes over their par value will be reflected
as a loss in the Company's Statement of Operations in the third
quarter of 2016, net of tax. The Company's use of proceeds
from this offering reflects its current estimates based on its
latest discussions with holders of its 2020 Convertible Notes and
the closing market price of its common stock on August 1, 2016; however, the Company does not
have definitive agreements in place with respect to certain of the
anticipated repurchase transactions, and the price at which it
purchases shares of its common stock will likely be different, and
therefore its actual use of proceeds from this offering may change
from these estimates.
Goldman, Sachs & Co. is acting as sole book-running manager
and Morgan Stanley & Co. LLC is acting as co-manager for the
offering.
The Company has filed a registration statement (including a
prospectus and related preliminary prospectus supplement for the
senior notes offering) with the Securities and Exchange Commission
(the "SEC") for the offering to which this communication
relates. Before you invest, you should read the preliminary
prospectus supplement and the accompanying prospectus for more
complete information about the Company and this offering. You
may obtain these documents free of charge by visiting the SEC
website at www.sec.gov. Alternatively, you may obtain copies
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
prospectus-ny@ny.email.gs.com and Morgan Stanley & Co. LLC, at
180 Varick Street, New York, NY
10014, Attention: Prospectus Department, or by email at
prospectus@morganstanley.com.
This press release is not an offer to sell these securities and
is not soliciting an offer to buy these securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of such 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.
About MGIC
MGIC, the principal subsidiary of MGIC Investment Corporation,
serves lenders throughout the United
States, Puerto Rico, and
other locations helping families achieve homeownership sooner by
making affordable low-down-payment mortgages a reality. At
June 30, 2016, MGIC had $177.5 billion of primary insurance in force
covering approximately one million mortgages.
From time to time MGIC Investment Corporation releases important
information via postings on its corporate website, including
corrections of previous disclosures, without making any other
disclosure and intends to continue to do so in the future.
Investors and other interested parties are encouraged to enroll to
receive automatic email alerts and Really Simple Syndication (RSS)
feeds regarding new postings. Enrollment information can be found
on MGIC Investment Corporation's website at http://mtg.mgic.com
under Investor Information.
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SOURCE MGIC Investment Corporation