MGIC Investment Received Proceeds of ~$1.15B from Offering of Stock, Convertible Shares
MGIC Investment Corporation (NYSE: MTG) (the "Company") today announced that it received proceeds from its previously announced concurrent public offerings of common stock and 2.00% convertible senior notes due 2020. The Company sold 135 million shares of Common Stock and $500 million principal amount of notes and received aggregate net proceeds, after underwriting discounts and commissions and estimated offering expenses, of approximately $1.15 billion.
The Company also announced that it transfered $800 million to Mortgage Guaranty Insurance Corporation (MGIC), its principal subsidiary, to increase its capital. Giving effect to the transfer, as of December 31, 2012, MGIC's risk to capital level is approximately 20 to 1 and MGIC meets the capital requirements of all jurisdictions having specific capital requirements for mortgage guaranty insurers without the need for any waiver. MGIC remains an eligible insurer for both Fannie Mae and Freddie Mac.
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