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Radian boosts bid price cap in Dutch auction tender for 5 5/8% notes
By Susanna Moon
Chicago, March 2 - Radian Group Inc. said holders may bid as high as $900 in the modified Dutch auction tender offer for its $250 million of outstanding 5 5/8% senior notes due 2013.
The bid price range is now $780 to $900, with the maximum bid price raised from $860, according to a company press release. The other terms of the offer remain unchanged.
Radian said on Feb. 23 that it will spend up to $100 million to purchase its notes under the modified Dutch auction tender offer.
As previously noted, the total purchase price includes an early participation payment of $40 for each $1,000 principal amount of notes tendered by the early deadline at 5 p.m. ET on March 7.
The company also will pay accrued interest.
In order to participate, holders must specify the bid price they would be willing to receive in exchange for each $1,000 principal amount of notes tendered in the offer. The bid price for each $1,000 principal amount of notes must be stated in increments of $2.50 and fall within the bid price range, according to a previous release.
The purchase price will be the lowest bid price that will allow Radian to purchase the maximum principal amount of notes, including accrued interest.
If the amount of tendered notes exceeds the offer cap, the notes will be purchased on a prorated basis.
The tender offer will end at 11:59 p.m. ET on March 21. Holders may withdraw tendered notes until the early participation deadline.
Holders who tender their notes after the early deadline will be ineligible to receive the early participation premium of $40 per $1,000 of notes.
Settlement is expected to occur on March 22.
Goldman, Sachs & Co. (800 828-3182 or collect 212 357-0345) is the dealer manager. Global Bondholder Services Corp. (866 873-6300 or collect 212 430-3774) is the depositary and information agent.
Radian Group is a Philadelphia-based mortgage insurance business.
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