Radian gives early tender update in capped offers for three series

By Susanna Moon

Chicago, Sept. 26 – Radian Group Inc. said it will now accept tenders for up to $175 million of its 7% senior notes due 2021 as part of its capped offers for three series of notes.

The company said on Sept. 12 that it was tendering for a maximum amount of three note series until 11:59 p.m. ET on Oct. 10.

The offers have been oversubscribed as of the early deadline at 5 p.m. ET on Sept. 25, however, so the early tendered notes will be purchased on a prorated basis and no more notes will be accepted after the early deadline, according to a company update on Tuesday.

Radian will accept for purchase the following amount of notes tendered by the early deadline with the total purchase price for each $1,000 principal amount and aggregate payment:

• $141,377,000 of the $231,835,000 tendered ($300 million outstanding) 5.5% senior notes due 2019 with a tender cap of $150 million and total purchase price of $1,060.99 for a total payment of $149,999,583;

• $115,874,000 of the $277,852,000 tendered ($350 million outstanding) 5.25% senior notes due 2020 with a tender cap of $125 million and total purchase price of $1,078.75 for a total payment of $124,999,078; and

• $152,339,000 of the $322,588,000 tendered ($350 million outstanding) 7% senior notes due 2021 with a tender cap of $175 million, up from $125 million, and total purchase price of $1,148.75 for a total payment of $174,999,426.

The total purchase price includes an early premium of $30.00 for each $1,000 principal amount of notes tendered by the early tender deadline.

Holders who tendered after the early deadline would have received the total amount less the early premium.

The issuer also will pay accrued interest to but excluding the settlement date, which is expected to be Sept. 26 for early tendered notes.

The tenders are not contingent upon any minimum amount of notes being tendered but are conditioned upon closing of an offering of senior debt securities with enough proceeds to help fund the offers, according to a previous company announcement.

As previously reported, Radian priced an upsized $450 million issue of seven-year senior bullet notes at par to yield 4½% on Sept. 12.

The dealer manager is RBC Capital Markets, LLC (877 381-2099 or 212 618-7822). The information agent is Global Bondholder Services Corp. (866 873-6300 or 212 430-3774).

Philadelphia-based Radian Group provides private mortgage insurance, risk management products and real estate services to financial institutions.

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