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MGIC Investment Announces Receipt Of Proceeds From Offerings Of Common Stock And Convertible Senior Notes

Stocks in this article: MTG

MILWAUKEE, March 12, 2013 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) (the "Company")  today announced that it received proceeds from its previously announced concurrent public offerings of  common stock and 2.00% convertible senior notes due 2020. The Company sold 135 million shares of Common Stock and $500 million principal amount of notes and received aggregate net proceeds, after underwriting discounts and commissions and estimated offering expenses, of approximately $1.15 billion.

The Company also announced that it transfered $800 million to Mortgage Guaranty Insurance Corporation (MGIC), its principal subsidiary, to increase its capital.  Giving effect to the transfer, as of December 31, 2012, MGIC's risk to capital level is approximately 20 to 1 and MGIC meets the capital requirements of all jurisdictions having specific capital requirements for mortgage guaranty insurers without the need for any waiver.  MGIC remains an eligible insurer for both Fannie Mae and Freddie Mac.

Curt S. Culver, CEO and Chairman of the Board of MGIC and MTG, said, "The success of our recent capital raise puts MGIC in an excellent position to take advantage of the improving housing market.  Our well established national sales organization makes us a formidable presence for our competition.  The additional capital also improves our holding company liquidity and further strengthens MGIC's claims paying ability."

Goldman, Sachs & Co. was the sole book-running manager for both offerings.  Dowling & Partners Securities, LLC, FBR Capital Markets & Co., Barclays Capital Inc. and Keefe, Bruyette & Woods, Inc. acted as co-managers for both offerings.  Foley & Lardner LLP was the Company's legal counsel for both offerings.

The shares and notes were issued pursuant to an effective registration statement (including a prospectus and related prospectus supplements for each of the common stock and convertible senior notes offerings) with the Securities and Exchange Commission (the "SEC") for the offerings to which this communication relates.  Investors should read the applicable prospectus supplement and the accompanying prospectus for more complete information about the Company and these offerings.  You may obtain these documents free of charge by visiting the SEC website at www.sec.gov.  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 prospectus-ny@ny.email.gs.com.

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.

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