MBIA Inc., the holding company of Municipal Bond Investors Assurance Corp., Friday notified the Securities and Exchange Commission it intends to sell $100 million of new bonds and 1.8 million shares of common stock.
The company already has $198 million in bonds outstanding. The proceeds of the new issue, which will be underwritten by Donaldson, Lufkin & Jenrette Securities Corp., will help increase MBIA Inc.'s capacity to enhance new credits.
The bonds are expected to carry a Aa2 rating from Moody's Investors Service and a AA-plus rating from Standard & Poor's Corp., according to a company statement.
The equity offering will include 1.43 million new shares from MBIA Inc., which currently has 40.2 million shares outstanding. The other 370,000 shares are being offered by Credit Local de France, which is seeking to cut its stake in MBIA Inc. to 2.2% from 3.2% through the offering.
Donaldson Lufkin and Lehman Brothers will underwrite the stock offering.
MBIA Inc.'s closing price on the New York Stock Exchange Friday was 56 1/4, down 1 1/4 points from Thursday's close.