MGIC Investment Corporation Announces Pricing of Offering of $425 Million of Senior Notes Due 2023

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  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 and Morgan Stanley & Co. LLC, at 180 Varick Street, New York, NY 10014, Attention: Prospectus Department, or by email at

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 under Investor Information.


SOURCE MGIC Investment Corporation

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