Radian Group enters $275 million five-year revolving facility

By Marisa Wong

Los Angeles, Dec. 8 – Radian Group Inc. entered into a new unsecured revolving credit facility on Dec. 7 with a committed availability of $275 million, including a $50 million standby letter-of-credit sub-facility, according to an 8-K filing with the Securities and Exchange Commission.

RBC Capital Markets and U.S. Bank NA are joint lead arrangers and joint bookrunners with Royal Bank of Canada as administrative agent, U.S. Bank as syndication agent and Associated Bank, NA as documentation agent.

The credit agreement includes an accordion feature that allows Radian to increase the total borrowing capacity by $125 million.

The facility matures on Dec. 7, 2026.

Borrowings will bear interest at Libor plus an applicable margin based on Radian’s senior unsecured public debt rating. The margin ranges from 150 basis points to 250 bps. The agreement includes Libor replacement provisions.

Radian must also pay facility commitment fees ranging from 20 bps to 45 bps, depending on ratings.

The credit agreement contains financial covenants including, among others, maximum debt-to-total capitalization, minimum consolidated net worth and minimum total adjusted statutory capital covenants.

There are no loans currently outstanding under the credit agreement, the filing noted.

Upon entering into the new credit agreement, Radian terminated its prior credit agreement dated Oct. 16, 2017.

Radian Group is Philadelphia-based provider of mortgage insurance and risk management products to financial institutions.

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