MGIC Investment Corp. (NYSE:MTG) files with Securities and Exchange Commission
MGIC Investment Corp. (NYSE:MTG), a private mortgage insurer in the United States, had recently submitted two filings with the regulatory body, Securities and Exchange Commission. The company plans to hold a special shareholders meeting on June 27, 2013 and had thereby filed an application with the Securities and Exchange Commission for the approval of the same. At the special shareholders meeting, MGIC Investment Corp. (NYSE:MTG) plans to submit the proposal for increasing the number of authorized shares of common stock for the company.
Following the recent sale of common stock and convertible debt in a public offering, the number of remaining authorized shares that MGIC Investment Corp. (NYSE:MTG) could issue to raise capital had declined. Hence, in order to meet out the prospective future requirements of capital, the company plans to increase its number of authorized shares for issuance after approval from the shareholders and due approval from the Securities and Exchange Commission.
Though the company does not have any near future plans to issue common stock to raise capital, increasing the number of authorized shares through this special shareholders meeting would give MGIC Investment Corp. (NYSE:MTG) higher level of flexibility to issue the shares if conditions necessitate. The second filing made by MGIC Investment Corp. (NYSE:MTG) with the Securities and Exchange Commission is related to the Shelf Registration Statement, which would authorize the company to issue securities like debt, common stock or warrants from time to time, when necessary. The company’s prior shelf registration statement had expired on April 20, 2013 and this new statement would replace the same.
One major competitor for MGIC Investment Corp. (NYSE:MTG) is the Radian Group Inc. (NYSE:RDN) who is involved in providing domestic, first – lien residential mortgage insurance. The company had recently announced dividend to its shareholders at the rate of $0.0025 per share and was paid on June 05, 2013. The shareholders of Radian Group Inc. (NYSE:RDN) as on records of May 23, 2013 would receive these dividends. The dividends so announced by the company were observed to put up a dividend yield of 0.07 percent.