MGIC Investment Corp. has begun a public offering of $350 million in senior notes.
The notes being sold are due in 2023. MGIC plans to use much of the net proceeds from the sale to purchase outstanding debt and shares.
MGIC hopes to combine some of the proceeds with shares of its common stock to purchase a portion of its $500 million in outstanding 2% convertible senior notes due in 2020. Another portion of the proceeds will go toward redeeming part of the $256.9 million of outstanding 9% convertible junior subordinated debenture due in 2063 that are owned by other holders.
The remaining balance of the proceeds will be held for general corporate purposes.
Goldman, Sachs & Co. is the book-running manager for the offering, and Morgan Stanley & Co. is the co-manager.
