MBIA Insurance Corp., whose exposure to subprime mortgage collateral recently prompted Fitch Ratings to place its ratings on Rating Watch Negative, has priced $1 billion of 25-year surplus notes, according to its parent company, MBIA Inc., Armonk, N.Y. MBIA Insurance agreed to issue the notes as part of a plan to strengthen its capital. The notes will bear an initial interest rate of 14%, and after Jan. 15, 2013, the rate will be 11.26% above the three-month London interbank offered rate. The notes are callable at par at the company's option on the fifth anniversary of issuance and every fifth anniversary thereafter, MBIA said. The company can be found on the Web at http://www.mbia.com.
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