Radian Group Inc. (RDN) announced today that it has priced its public offering (the “Offering”) of senior unsecured notes due 2027 (the “Notes”) and increased the size of the Offering from $350 million aggregate principal amount to $450 million aggregate principal amount. The Offering is expected to close on June 24, 2019, subject to customary closing conditions.
The Notes will pay interest semi-annually on March 15 and September 15, beginning on March 15, 2020, at a rate of 4.875% per year, and will mature on March 15, 2027.
The Company intends to use the net proceeds from the Offering and available cash on hand to fund tender offers (the “Tender Offers”), which the Company commenced concurrently with the Offering, to purchase any and all of the Company’s 5.250% senior notes due 2020 and 7.000% senior notes due 2021, and to pay certain fees and expenses in connection with the Tender Offers. In addition, the Company intends to use any remaining proceeds for general corporate purposes, including the redemption of the 5.250% senior notes due 2020 in accordance with the terms of the related indenture, and which may also include redemption or repurchases of other outstanding debt securities.
RBC Capital Markets, LLC and Goldman Sachs & Co. LLC are acting as joint book-running managers, and Barclays Capital Inc., Credit Suisse Securities (USA) LLC and U.S. Bancorp Investments, Inc. are acting as joint lead managers for the Offering. The Notes are being offered for sale pursuant to a prospectus and related prospectus supplement that constitute a part of the Company’s shelf registration statement filed with the Securities and Exchange Commission (the “SEC”) on Form S-3 on February 27, 2017. Before making an investment, potential investors should first read the prospectus supplement and accompanying prospectus, the registration statement and the other documents that the Company filed or will file with the SEC in connection with the Offering. A copy of the prospectus supplement and the accompanying base prospectus for the Offering has been filed with the SEC and is available for free on the SEC’s website: http://www.sec.gov. Alternatively, copies may be obtained from RBC Capital Markets, Brookfield Place, 200 Vesey Street, 8th Floor, New York, New York 10281, Attention: Leveraged Capital Markets, or by telephone at 1-877-280-1299, or from Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at 1-866-471-2526 or facsimile at 212-902-9316, or by emailing email@example.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. The Offering may be made only by means of a prospectus supplement and accompanying base prospectus filed with the SEC.
The Tender Offers are only being made upon the terms and subject to the conditions set forth in the Company’s Offer to Purchase dated June 13, 2019, as the same may be amended or supplemented, and this press release does not constitute an offer to purchase any securities.
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, real estate, and title services. We are powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk.