MGIC Investment Corporation Announces Redemption of Outstanding 5.750% Senior Notes due 2023

Rhea-AI Summary

MGIC Investment Corporation (NYSE: MTG) announced it will redeem all outstanding 5.75% Senior Notes due 2023 on July 15, 2022. The redemption will occur at par plus a make-whole premium and accrued unpaid interest. Approximately $242.3 million of these Notes remains outstanding as of the announcement date. This action reflects the company's strategy to manage its debt portfolio effectively.

Positive

• Redemption of $242.3 million in Senior Notes improves financial leverage and reduces interest expense.
• The make-whole premium indicates management's confidence in future cash flows.

Negative

• None.

MILWAUKEE, June 14, 2022 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today announced that it is exercising its option to redeem all of its outstanding 5.75% Senior Notes due 2023 (the "Notes"). The redemption date is July 15, 2022, and the redemption price is equal to par plus a make-whole premium and accrued and unpaid interest to, but excluding, the redemption date. As of the date hereof, there was approximately $242.3 million aggregate principal amount of the Notes outstanding.

About MGIC

Mortgage Guaranty Insurance Corporation "MGIC" (www.mgic.com), 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 through the use of private mortgage insurance.

From time-to-time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website for information related to underwriting and pricing and intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. 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 for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.

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SOURCE MGIC Investment Corporation

FAQ

What is the redemption date for MGIC's Senior Notes?

The redemption date for MGIC's Senior Notes is July 15, 2022.

How much is MGIC redeeming in Senior Notes?

MGIC is redeeming approximately $242.3 million of its outstanding Senior Notes.

What is the interest rate on MGIC's Senior Notes due in 2023?

The interest rate on MGIC's Senior Notes due in 2023 is 5.75%.

What happens to MGIC's Senior Notes upon redemption?

Upon redemption, holders of MGIC's Senior Notes will receive par value plus a make-whole premium and accrued unpaid interest.