MBIA Again Taps Warburg for Private Equity |
| TheStreet.com - Feb 7, 2008 |
Embattled financial guarantor MBIAMBI scored additional funds from its biggest cheerleader, private equity firm Warburg Pincus.
Warburg has agreed to backstop an offering of 50.3 million shares offering that would help MBIA raise approximately $750 million. Warburg's move has the private equity shop plowing more money into Armonk, N.Y.-based guarantor.
Warburg already handed over $500 million to MBIA as a part of an earlier agreement meant to support a capital raise of approximately $1 billion. This latest offering represents an increase of about $250 million from Warburg's original planned commitment. MBIA already issued about $1 billion in so-called surplus notes that offered a yield of 14% -- typically the sort of rich premium affixed to junk debt. Those securities are offering an even richer yield now as the notes have fallen below par since being offered.
Read Full Article from TheStreet.com
- Posted: 2008-02-07 09:29:30
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