MBIA to raise $750 million through stock issuance

By Lisa Kerner

Charlotte, N.C., Feb. 6 - MBIA Inc. will issue some 50.3 million shares of its common stock to raise $750 million.

Proceeds from the underwritten registered offer will be used to support the business plan of MBIA's subsidiary, MBIA Insurance Corp., a company news release stated.

Warburg Pincus will provide a backstop by agreeing to purchase up to $750 million of convertible participating preferred stock, subject to limited conditions.

The convertible participating preferred stock will mandatorily convert into MBIA's common stock upon a shareholder vote.

Warburg Pincus has the option to purchase up to $300 million of the convertible participating preferred stock under the backstop.

J.P. Morgan Securities Inc. and Lehman Brothers Inc. are acting as the joint bookrunners.

MBIA provides financial guarantee insurance and credit protection products to public finance and structured finance issuers and investors and to capital market participants. The company is based in Armonk, N.Y.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.