We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MGIC Investment Completes Pricing of $650M Senior Notes
Read MoreHide Full Article
MGIC Investment Corporation (MTG - Free Report) has completed the pricing of $650 million aggregate principal amount of senior unsecured notes. The notes carry an interest rate of 5.250% and are scheduled to mature in Aug 15, 2028.
The senior notes will pay interest on a semi-annual basis on Feb 15 and Aug 15. The company has used part of the net proceeds from the sale of the notes to raise funds for a cash tender offer for any and all of the $425 million outstanding aggregate principal amount of its previously issued senior notes, which carries an interest rate of 5.750% and are scheduled to mature in 2023.
Another portion of the net proceeds has been deployed to purchase $38.6 million aggregate principal amount of its 9% Convertible Junior Subordinated Debentures, scheduled to mature in 2063.
The remaining portion will be added to the company’s funds for the use of general corporate purposes.
The company issued senior notes during a low interest rate environment to get hold of more funds and enhance financial flexibility without affecting its liquidity. As of Jun 30, 2020, MGIC Investment had $530 million liquidity.
The company’s debt levels have remained relatively stable in the past few years. As of Jun 30, 2020, the company’s long-term debt was $833 million, which remained almost flat with the 2019-end level. Debt to capital at the end of second quarter of 2020 improved 20 bps from 2019 level and compared favorably with the industry’s measure of 30.3%. Nonetheless, the latest offering will increase the debt-to-capital ratio by 930 basis points.
Further, times interest earned of 13.6 compared favorably with the industry’s measure of 10.3. The firm’s times interest earned ratio has been improving over the years. The improvement in this ratio indicates that the firm will be able to meet current obligations in the near future without any difficulties. At a time when every entity is looking forward to preserve liquidity amid uncertainty as a result of the COVID-19 outbreak, an improving ratio is reassuring for investors.
By capitalizing on the low interest rate environment, the company is also attempting to reduce its interest burden, thus facilitating margin expansion. Also, the company’s operational strength should enable it to service debt uninterruptedly, thereby maintaining the stock’s creditworthiness.
Recently, CNA Financial Corporation (CNA - Free Report) offered 2.050% $500 million senior unsecured notes and 3.625% $500 million senior unsecured notes to capitalize on the low interest rate environment.
Shares of this Zacks Rank #3 (Hold) multi-line insurer have lost 27.5% in a year’s time compared with the industry’s decline of 12.1%. Nevertheless, increase in new insurance written, decline in claim payments and improvement in the housing market should drive shares going forward.
Old Republic engages in the insurance underwriting and related services business primarily in the United States and Canada. It surpassed estimates in each of the last four quarters, with the average surprise being 36.72%.
Assurant provides lifestyle and housing solutions that support, protect, and connect consumer purchases in North America, Europe and the Asia Pacific. It surpassed estimates in three of the last four quarters, with the average surprise being 6%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
MGIC Investment Completes Pricing of $650M Senior Notes
MGIC Investment Corporation (MTG - Free Report) has completed the pricing of $650 million aggregate principal amount of senior unsecured notes. The notes carry an interest rate of 5.250% and are scheduled to mature in Aug 15, 2028.
The senior notes will pay interest on a semi-annual basis on Feb 15 and Aug 15. The company has used part of the net proceeds from the sale of the notes to raise funds for a cash tender offer for any and all of the $425 million outstanding aggregate principal amount of its previously issued senior notes, which carries an interest rate of 5.750% and are scheduled to mature in 2023.
Another portion of the net proceeds has been deployed to purchase $38.6 million aggregate principal amount of its 9% Convertible Junior Subordinated Debentures, scheduled to mature in 2063.
The remaining portion will be added to the company’s funds for the use of general corporate purposes.
The company issued senior notes during a low interest rate environment to get hold of more funds and enhance financial flexibility without affecting its liquidity. As of Jun 30, 2020, MGIC Investment had $530 million liquidity.
The company’s debt levels have remained relatively stable in the past few years. As of Jun 30, 2020, the company’s long-term debt was $833 million, which remained almost flat with the 2019-end level. Debt to capital at the end of second quarter of 2020 improved 20 bps from 2019 level and compared favorably with the industry’s measure of 30.3%. Nonetheless, the latest offering will increase the debt-to-capital ratio by 930 basis points.
Further, times interest earned of 13.6 compared favorably with the industry’s measure of 10.3. The firm’s times interest earned ratio has been improving over the years. The improvement in this ratio indicates that the firm will be able to meet current obligations in the near future without any difficulties. At a time when every entity is looking forward to preserve liquidity amid uncertainty as a result of the COVID-19 outbreak, an improving ratio is reassuring for investors.
By capitalizing on the low interest rate environment, the company is also attempting to reduce its interest burden, thus facilitating margin expansion. Also, the company’s operational strength should enable it to service debt uninterruptedly, thereby maintaining the stock’s creditworthiness.
Recently, CNA Financial Corporation (CNA - Free Report) offered 2.050% $500 million senior unsecured notes and 3.625% $500 million senior unsecured notes to capitalize on the low interest rate environment.
Shares of this Zacks Rank #3 (Hold) multi-line insurer have lost 27.5% in a year’s time compared with the industry’s decline of 12.1%. Nevertheless, increase in new insurance written, decline in claim payments and improvement in the housing market should drive shares going forward.
Stocks to Consider
Some better-ranked stocks in the multi-line insurance industry include Old Republic International Corporation (ORI - Free Report) and Assurant Inc. (AIZ - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Old Republic engages in the insurance underwriting and related services business primarily in the United States and Canada. It surpassed estimates in each of the last four quarters, with the average surprise being 36.72%.
Assurant provides lifestyle and housing solutions that support, protect, and connect consumer purchases in North America, Europe and the Asia Pacific. It surpassed estimates in three of the last four quarters, with the average surprise being 6%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>