MBIA executives to buy shares at lower price
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- March
- 7
Executives at MBIA Inc. who agreed to buy company stock as part of a capital raising plan will be allowed to purchase the shares at a significantly lower price, the company disclosed today.
Members of MBIA’s senior management originally committed in December to purchasing the stock at $31 a share as part of an agreement to lure an investment by Warburg Pincus, a New York-based private equity firm, according to an MBIA filing with the U.S. Securities and Exchange Commission.
The Warburg investment has been an important part of MBIA’s plans to raise capital and preserve the AAA credit rating for the Armonk-based bond insurer, which has been hit hard by the subprime mortgage crisis.
Warburg Pincus has agreed to reduce the price at which executives must purchase the stock to $12.15 a share and to extend the time period during which such shares must be acquired to June 30. The total dollar amount of the shares purchased will be no less than the original commitment by the executives, according to filing.
MBIA’s stock has fallen significantly since the original agreement with Warburg was announced in December.
In addition, the compensation committee of MBIA’s board approved the cancellation of certain stock options awarded to the executives.
This entry was posted
on Friday, March 7th, 2008 at 5:26 pm by Jay Loomis.
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Category: Corporate doings
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