After announcing earlier this week that it would raise $750 million in a common stock offering, as part of an attempt to build capital and protect its AAA rating, monoline insurer MBIA Inc. said late Thursday that it had bumped up its offer to $1 billion and priced the offering at $12.15 per share. According to a press statement, private equity investor Warburg Pincus will purchase $300 million in common stock as part of the offering; MBIA also said the offering was oversubscribed, meaning that the private equity firm’s ‘backstop’ — it’s offer to purchase any outstanding shares not purchased by other investors — will likely not be needed. Warburg Pincus has already invested $500 million into the ailing bond insurer. MBIA has been scrambling to build a capital base as the rating agencies have begun downgrading some monoline bond insurers and warning on others, over concerns that exposure to mortgage-related bonds, including CDOs, will strain the capital resources of most insurers. Moody’s Investors Service was the latest to downgrade an insurer, hacking the ratings of former AAA-rated XL Capital Insurance down six notches. With the current common stock offer, MBIA will have raised $2.5 billion since November of last year. For more information, visit http://www.mbia.com.
MBIA Bumps Up Share Offer to $1 Billion
Most Popular Articles
Latest Articles
Real estate investors purchased 16% of homes in Q3 2024
Redfin said the number of homes bought by investors fell 2.3% year over year in Q3 2024. Their market share was the lowest since late 2020.
-
Could the Trump transition delay some reverse mortgage policy decisions?
-
This doctor says homes must accommodate aging in place
-
MBA revises 2025 mortgage rates forecast, and it’s not good
-
Mortgage servicing strategies are undergoing a major transformation
-
Some say Austin’s rental market might collapse. That’s not reality