Radian Completes $525 Million Public Offering of Senior Notes
May 18 2020 - 4:30PM
Business Wire
Transaction serves to enhance capital resources
and increase financial flexibility
Fitch assigns investment grade rating to
company and debt offering
Radian Group Inc. (NYSE: RDN) announced that the company
completed its previously announced underwritten public offering of
$525 million principal amount of 6.625 percent Senior Notes due
2025. Additional details regarding the transaction may be found in
the company’s filing on the company’s Form 8-K filed on May 15,
2020.
Last week, Fitch Ratings published an 'A-' Insurer Financial
Strength rating of Radian Guaranty Inc., the principal mortgage
insurance subsidiary of Radian Group, and a 'BBB' Long-term Issuer
Default Rating of Radian Group. Fitch also published a 'BBB-'
rating of Radian Group's senior unsecured debt and the new senior
debt offering. Each rating assigned is investment grade. The
current ratings’ negative outlook reflects Fitch’s concern
regarding the impact of the economic effects of the pandemic.
Chief Executive Officer Rick Thornberry commented, “For the past
several years, we have been focused on enhancing our capital
resources and increasing our financial flexibility. Our recently
announced public offering of senior notes, which was increased from
$400 million to $525 million in aggregate principal amount as a
result of investor demand, is further evidence of this strategic
focus, the financial strength of our company, and the confidence of
the capital markets in our strategy. This transaction will, on a
proforma basis, increase Radian’s total holding company available
resources, which includes our credit facility, from $0.9 billion at
March 31, 2020, to $1.4 billion, and our PMIERs excess available
resources to $2.5 billion, or 86% above our Minimum Required Assets
under the PMIERs as of March 31, 2020. This transaction is expected
to provide Radian with additional financial flexibility and allow
us to be even better positioned to successfully navigate the
COVID-19 pandemic and economic environment.”
RBC Capital Markets, LLC, Goldman Sachs & Co. LLC, Barclays
Capital Inc., Credit Suisse Securities (USA) LLC and U.S. Bancorp
Investments, Inc. acted as joint book-running managers and Samuel
A. Ramirez & Company, Inc., CIBC World Markets Corp. and Loop
Capital Markets LLC acted as co-managers for the offering.
About Radian
Radian is ensuring the American dream of homeownership
responsibly and sustainably through products and services that
include industry-leading mortgage insurance and a comprehensive
suite of mortgage, risk, title, valuation, asset management and
other real estate services. We are powered by technology, informed
by data and driven to deliver new and better ways to transact and
manage risk. Visit www.radian.com to learn more about how Radian is
shaping the future of mortgage and real estate services.
Forward-Looking Statements
All statements in this press release that address events,
developments or results that we expect or anticipate may occur in
the future are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the
Exchange Act and the U.S. Private Securities Litigation Reform Act
of 1995. In most cases, forward-looking statements may be
identified by words such as "anticipate," "may," "will," "could,"
"should," "would," "expect," "intend," "plan," "goal,"
"contemplate," "believe," "estimate," "predict," "project,"
"potential," "continue," "seek," "strategy," "future," "likely" or
the negative or other variations on these words and other similar
expressions. These statements, which may include, without
limitation, projections regarding our future performance and
financial condition, are made on the basis of management's current
views and assumptions with respect to future events. These
statements speak only as of the date they were made, and we
undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. Any forward-looking statement is not a guarantee of
future performance and actual results could differ materially from
those contained in the forward-looking statement. These risks and
uncertainties include our ability to successfully execute and
implement our capital plans and to maintain sufficient holding
company liquidity to meet our liquidity needs, in particular given
the unprecedented and rapidly changing social and economic impacts
associated with the COVID-19 pandemic on the U.S. and global
economies generally, and especially on the U.S. housing, real
estate and housing finance markets. For more information regarding
these risks and uncertainties as well as certain additional risks
that we face, you should refer to “Item 1A. Risk Factors” in our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2020
and “Item 1A. Risk Factors” in our Annual Report on Form 10-K for
the year ended December 31, 2019, and to subsequent reports and
registration statements filed from time to time with the U.S.
Securities and Exchange Commission. We operate in a changing
environment where new risks emerge from time to time and it is not
possible for us to predict all risks that may affect us.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200518005723/en/
For Investors John Damian – Phone: 215.231.1383 Email:
john.damian@radian.com
For the Media Rashi Iyer – Phone: 215.231.1167 Email:
rashi.iyer@radian.com
Radian (NYSE:RDN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Radian (NYSE:RDN)
Historical Stock Chart
From Apr 2023 to Apr 2024