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MGIC Investment Corporation Announces Pricing Of Concurrent Offerings Of Common Stock And Convertible Senior Notes Raising Over $1.1 Billion In Gross Proceeds

MILWAUKEE, March 6, 2013 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) (the "Company") announced today that it priced the public offering and sale of 135 million shares of its common stock at a price of $5.15 per share. The Company granted to the underwriters a 30-day option to purchase up to an additional 20.25 million shares.

In a concurrent offering, the Company priced $450 million in aggregate principal amount of 2.00% convertible senior notes due 2020 (the "notes").  The Company granted the underwriters a 30-day option to purchase up to an additional $50 million in aggregate principal amount of notes.  The notes will bear interest at a rate of 2.00% per year, payable semi-annually, in arrears, on April 1 and October 1 of each year, beginning October 1, 2013.  The notes will mature on April 1, 2020.  The notes will be convertible at the option of the holder prior to the close of business on the business day immediately preceding January 1, 2020 under certain circumstances described in the prospectus supplement for the notes and at any time on or after January 1, 2020 until the close of business on the second scheduled trading day immediately preceding the maturity date.  The conversion rate will initially be 143.8332 shares of common stock per $1,000 principal amount of notes (equivalent to a conversion price of approximately $6.95 per share of common stock), subject to adjustment.  Upon conversion, the Company will deliver a number of shares of common stock equal to the aggregate principal amount of the notes to be converted divided by $1,000, multiplied by the then applicable conversion rate.

The Company intends to use the net proceeds from the offerings for its general corporate purposes, which may include increasing the capital of the Company's insurance subsidiary Mortgage Guaranty Insurance Corporation (MGIC) and other subsidiaries of the Company, and improving liquidity by providing funds for debt service.

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