By Paul A. Harris
Portland, Ore., Aug. 6 – MGIC Investment Corp. priced an upsized $650 million issue of eight-year senior notes (Ba1/BB+) at par to yield 5¼% in a Thursday drive-by, according to market sources.
The issue size increased from $550 million.
The yield printed 12.5 basis points beneath the tight end of yield talk in the 5½% area. Initial talk had the deal coming to yield in the high 5% area to 6%.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC.
The Milwaukee-based mortgage insurance company plans to use a portion of the proceeds to finance its tender for any and all of $425 million of 5¾% senior notes due 2023 and a portion of its 9% convertible junior subordinated debentures due 2063, with any remaining proceeds to be used for general corporate purposes.
| Issuer: | MGIC Investment Corp.
|
| Amount: | $650 million
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| Maturity: | Aug. 15, 2028
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| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC, U.S. Bancorp Investments Inc., Samuel A. Ramirez and Co. Inc., CastleOak Securities LP and Zelman Partners LP
|
| Coupon: | 5¼%
|
| Price: | Par
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| Yield: | 5¼%
|
| Spread: | 481 bps
|
| Call protection: | Three years
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| Trade date: | Aug. 6
|
| Settlement date: | Aug. 12
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| Ratings: | Moody's: Ba1
|
| S&P: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 5½% area
|
| Marketing: | Drive-by
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