$318 MILLION BOND PRICING TODAY
MGIC INVESTMENT MANAGEMENT announces BOND PRICING through SEC 8K this morning:
MGIC Investment Corporation is announcing the pricing of $318,636,000 of 10-year mortgage insurance-linked notes issued by Home Re 2018-1
Ltd. (Home Re), a newly formed Bermuda special purpose insurer. The notes are being offered for sale to eligible third party capital markets investors in an unregistered private offering. In connection with the transaction, MGIC Investment Corporation’s wholly owned subsidiary, Mortgage Guaranty Insurance Corporation (MGIC), will receive $318,636,000 of fully collateralized excess of loss reinsurance protection from Home Re at inception, covering an existing portfolio of mortgage insurance policies written with an insurance coverage in force date on or after July 1, 2016,
but before January 1, 2018. The offering is expected to close on or before October 30, 2018, subject to customary conditions. Home Re is not a subsidiary or affiliate of MGIC Investment Corporation.
The mortgage insurance-linked notes to be issued by Home Re will consist of three classes as follows:
$142,449,000 Class M-1 Notes with an initial interest rate of one-month LIBOR plus 160 basis points;
$157,444,000 Class M-2 Notes with an initial interest rate of one-month LIBOR plus 300 basis points; and
$18,743,000 Class B-1 Notes with an initial interest rate of one-month LIBOR plus 400 basis points.
The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This report shall not constitute an offer to sell or a solicitation of an offer to buy any of the aforementioned securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in
which, or to any person to whom, such an offer, solicitation or sale would be unlawful.
