PHILADELPHIA--(BUSINESS WIRE)--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.
