Wednesday, January 09, 2008

MBIA to Raise Funds, Cut Dividend

by Calculated Risk on 1/09/2008 10:35:00 AM

From the WSJ: MBIA to Raise Funds, Cut Dividend

MBIA ... said it will raise $1 billion in new capital, cut its annual dividend by about 62%, to 52 cents a share...

The dividend cut announced today will save the company an estimated $80 million a year. The $1 billion in new capital will be raised by issuing a kind of debt known as surplus notes.

In its announcement, MBIA said, "Upon successful completion of its capital management plan, the Company expects to meet or exceed the rating agencies' current capital requirements for MBIA to retain its Triple-A ratings."