MGIC begins roadshow for $350 million bullet issue pricing at mid-week

By Paul Deckelman

New York, Aug. 1 – MGIC Investment Corp. was heard by high yield syndicate sources to have begun a short roadshow on Monday for the company’s planned $350 million issue of seven-year senior notes (Ba3/BB).

That roadshow opened on Monday in New York with a group investor luncheon and conference call and continues with a similar itinerary on Tuesday in Boston.

The roadshow is scheduled to continue on Wednesday, but no details on that session have yet been made available.

The deal is expected to price at mid-week following the roadshow.

The SEC registered offering is being brought to market via sole bookrunner Goldman Sachs & Co. and co-manager Morgan Stanley & Co. Inc.

The bonds are noncallable for the life of the issue.

MGIC, a Milwaukee-based mortgage insurance company, plans to use the net proceeds from the offering, together with, in certain cases, shares of common stock, to purchase a portion of its 2020 convertible notes and may use a portion of the net proceeds to purchase a portion of its 2063 convertible debentures owned by holders other than MGIC.

It also plans to use a portion of the net proceeds to purchase shares of common stock to offset the shares used as partial consideration in the purchase of the 2020 convertible notes, with such shares to be acquired in open-market purchases, in privately negotiated transactions or otherwise.

Any remaining net proceeds will be used for general corporate purposes.

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