Radian Prices Offering of Common Stock; Increases Size and Prices Concurrent Offering of Senior Notes
May 07 2014 - 7:33PM
Business Wire
Radian Group Inc. (NYSE: RDN) announced today that it has priced
its previously announced public offering of 15,500,000 shares of
its common stock (the “Common Stock Offering”) at $14.50 per share,
and has priced its concurrent public offering of senior unsecured
notes due 2019 and increased the size of that offering from $200
million aggregate principal amount to $300 million aggregate
principal amount (the “Notes Offering” and, collectively with the
Common Stock Offering, the “Offerings”). Goldman, Sachs & Co.
is acting as book-running manager for the Offerings, and J.P.
Morgan Securities LLC, Morgan Stanley & Co. LLC, Keefe,
Bruyette & Woods, Inc., and Macquarie Capital (USA) Inc. are
acting as co-managers in the Common Stock Offering. In connection
with the Common Stock Offering, the underwriters have a thirty-day
option to purchase up to an additional 2,325,000 shares of common
stock. The Offerings are expected to close on May 13, 2014, subject
to customary closing conditions.
The notes will be unsecured senior obligations of Radian Group
Inc. The notes will pay interest semi-annually on June 1 and
December 1 at a rate of 5.50% per year, and will mature on June 1,
2019.
The Company intends to use the net proceeds from the Offerings
to fund the purchase price and related expenses of its pending
acquisition of Clayton Holdings LLC, to fund the early redemption
of Radian Group’s 5.375% Senior Notes due June 2015 and for working
capital.
Neither the Common Stock Offering nor the Notes Offering will be
contingent on the completion of the other offering or on the
completion of the Clayton acquisition.
The Offerings are being conducted as separate public offerings
pursuant to an effective registration statement (including a base
prospectus) under the Securities Act of 1933, as amended. Before
making an investment, potential investors should first read the
prospectus supplement and accompanying prospectus, the registration
statement and the other documents that Radian Group filed or will
file with the Securities and Exchange Commission in connection with
the applicable Offering. A copy of the preliminary prospectus
supplement and the accompanying prospectus for each of the Common
Stock Offering and the Notes Offering has been filed with the SEC
and is available for free on the SEC’s website, www.sec.gov. Alternatively, copies may be obtained
from Goldman, Sachs & Co., Attn: Prospectus Department, 200
West Street, New York, NY 10282, by calling (866) 471-2526 or by
emailing prospectus-ny@ny.email.gs.com.
This press release is for informational purposes only and does
not constitute an offer to sell or the solicitation of an offer to
buy any security of the Company, nor will there be any sale of any
such security in any jurisdiction in which such offer, sale or
solicitation would be unlawful. Each of the Offerings may be made
only by means of a prospectus supplement and accompanying base
prospectus.
About Radian
Radian Group Inc., headquartered in Philadelphia, provides
private mortgage insurance and related risk mitigation products and
services to mortgage lenders nationwide through its principal
operating subsidiary, Radian Guaranty Inc. These services help
promote and preserve homeownership opportunities for homebuyers,
while protecting lenders from default-related losses on residential
first mortgages and facilitating the sale of low-down payment
mortgages in the secondary market.
Radian Group Inc.Emily Riley, 215-231-1035emily.riley@radian.biz
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