MGIC Investment Corporation (NYSE:MTG) has commenced on Monday a $350-million public offering of senior notes due by 2023.

Acting as sole book-running manager and co-manager for the latest public offering of MGIC Investment are Goldman Sachs & Co. and Morgan Stanley & Co. LLC, respectively.

Purpose of Net Proceeds

The company will use the net proceeds from the public offering to acquire a portion of its outstanding 2% convertible senior notes due by 2020 and probably to acquire a portion of its 9% convertible junior subordinated debentures due by 2063 owned by other investors as well. MGIC Investment also hopes to use the net proceeds from the public offering to offset the shares used as partial consideration in the 2020 convertible notes acquisition. Any remainder will be used for general corporate expenses.

Q2 Financial Highlights

Last month, MGIC Investment released its second quarter earnings report, showing a total revenue of $263.50 million, up from $24.10 million during the same quarter in 2015.

The company had a net income of $109.20 million, down from the $113.70 million net income reported during the same period last year. For the period, the company had a diluted earnings per share (EPS) of $0.26, down year-over-year from a diluted EPS of $0.28.

MGIC Investment has also nearly cut its losses by half year-over-year to $90.20 million from $46.60 million.

Net premiums written amounted to $250 million, up from last year’s $226.80 million. Net insurance written also grew year-over-year to $12.60 billion from $11.80 billion. Consequently, MGIC Investment ended the period with a total primary insurance in force of $177.50 billion, up from last year’s $168.80 billion.

Patrick Sinks, MGIC Investment CEO, took pride that the company’s insurance in force significantly strengthened during the second quarter. Sinks also noted that MGIC Investment was able to repurchase more than $50 million of the 5% convertible senior notes due by next year.

The company’s cash and cash equivalents for the quarter was seen at nearly $5 billion, up year-over-year from $4.80 billion.