MGIC Investment Corp. priced its
On Thursday morning MGIC opened at $5.24 and at 11:10 a.m. was down to $5.12 per share.
The company also priced a concurrent $450 million senior notes offering at a 2% interest rate. The offering consists of convertible senior notes due in 2020, with interest payable on April 1 and Oct. 1.
The conversion rate is 143.8332 shares of common stock for each $1,000 in principal of notes, which MGIC said is equal to $6.95 per share.
Underwriters have an option to buy 20.25 million common stock shares and an additional $50 million in debt.
MGIC is following competitor Radian in tapping the equity and debt markets for capital. Radian
Radian’s $350 million debt offering had an interest rate of 2.25%.
MGIC plans to use the proceeds for general corporate purposes, which it said may include increasing the capital at Mortgage Guaranty Insurance Corp. and other subsidiaries. In its