In a U.S. Securities and Exchange Commission filing, MBIA said it canceled options to buy 64,525 shares at $31 each on December 21.
NEW YORK (Reuters) - MBIA Inc <MBI.N>, the world's largest bond insurer, said on Friday it canceled some stock options awarded to 10 current and former executives, and lowered the purchase price of shares that some of them agreed to buy.
In a U.S. Securities and Exchange Commission filing, MBIA said it canceled options to buy 64,525 shares at $31 each on December 21.
MBIA had awarded the options after the executives committed to buying some MBIA stock at that price within 60 days of a $500 million infusion from private equity firm Warburg Pincus
LLC <WP.UL>.
!ADVERTISEMENT!The company said the 10 officers, other than ousted chief executive Gary Dunton, will satisfy their commitments if they buy the same dollar amounts of stock at a price not less than $12.15 per share by June 30.
That's the price at which MBIA agreed in February to sell about $1.1 billion of stock to raise capital and help preserve its critical "triple-A" credit ratings. Warburg Pincus bought $300 million of stock in the offering. It agreed to the amended terms, MBIA said.
Dunton had received options to buy 40,000 shares. The other nine executives, including Chief Financial Officer C. Edward Chaplin, each received options to buy 2,725 shares.
Dunton was ousted as chief executive last month, and replaced by Joseph "Jay" Brown.
Armonk, New York-based MBIA has raised some $2.6 billion of capital in recent months after write-downs tied to its agreements to guarantee securities tied to subprime mortgages and other risky debt led to a $1.92 billion loss in 2007. The company has also eliminated its dividend.
Shares of MBIA closed Thursday at $11.60 on the New York Stock Exchange.
(Reporting by Jonathan Stempel; editing by Jeffrey Benkoe)
