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      What Took MBIA Inc Stock 63% Higher In Extended Trades?

      By Fahim Awan

      Published on

      December 8, 2023

      9:00 AM UTC

      What Took MBIA Inc Stock 63% Higher In Extended Trades?

      MBIA Inc. (NYSE: MBI) witnessed a substantial surge in its stock value on Thursday, propelled by the revelation of unprecedented cash dividends. During the extended trading session, MBI stock exhibited remarkable growth, ascending by an impressive 63.96% to reach a trading price of $12.10. In the regular trading hours, the stability of MBI stock manifested, with a marginal 0.27% upward momentum, settling at $7.38.

      The noteworthy development emerged as MBIA (MBI) unveiled that its Board of Directors had sanctioned an extraordinary cash dividend of $8.00 per share on MBIA common stock. This dividend is earmarked for shareholders recorded as of December 18 and is scheduled for disbursement on December 22, amounting to approximately $409 million based on the 51.1 million shares currently in circulation.

      In a parallel announcement, MBIA informed the public that the New York Department of Financial Services (“NYDFS”) had greenlit a substantial $550 million extraordinary dividend, to be executed through NYDFS’ wholly-owned subsidiary, National Public Finance Guarantee Corporation (“National”). Furthermore, on November 20, 2023, the corporation received a dividend of $97.245 million as an inherent entitlement from National.

      MBIA has opted to retain the residual dividends from National, directing them towards general corporate objectives such as future operational costs and obligations related to debt servicing. This strategic allocation of funds is indicative of MBIA’s commitment to fortifying its financial foundation and providing substantial value to its shareholders.

      This series of financial initiatives underscores MBIA’s dedication to augmenting shareholder value and fortifying its liquidity position. The company remains resolute in its pursuit of additional strategies aimed at enhancing shareholder value and navigating toward the optimal resolution of corporate matters. Anticipating future opportunities, MBIA envisions National seeking approval for further extraordinary dividends in the upcoming years.

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