Ambac raises $1.5 billion

NEW YORK, March 6 (Reuters) - Ambac Financial Group Inc (ABK.N: Quote, Profile, Research, Stock Buzz) sold $1.5 billion of securities on Thursday, a market source said.

The sale included $1.25 billion of common shares, which were priced at $6.75 a share, the source said. That level is 9 percent below Ambac's closing price on Thursday of $7.42.

Ambac also sold $250 million of mandatory convertible securities, at a dividend of 9.5 percent and a conversion premium of 18 percent, the source said. (Reporting by Dan Wilchins; Editing by Gary Hill)