Radian Group begins exchange offer for 5 3/8% senior notes due 2015

By Marisa Wong

Madison, Wis., Dec. 3 - Radian Group Inc. announced an offer to holders to exchange any and all of its $250 million of outstanding 5 3/8% senior notes due June 15, 2015 for a new series of 9% senior notes due June 15, 2017 and a cash consideration.

Holders who tender their 5 3/8% notes by 5 p.m. ET on Dec. 14, the early participation date, will receive for each $1,000 principal amount of old notes the total exchange consideration, which consists of an equal principal amount of new notes and an early participation payment of $25.00 in cash.

Holders will also receive interest accrued from Dec. 15 to, but not including, the settlement date, which is expected to be Jan. 4.

According to a company press release, one of the holders has agreed to tender $167 million of 5 3/8% notes before the early participation date. The company said it will pay the holder a lock-up fee in exchange for that holder's commitment to participate in the exchange offer.

The exchange offer will expire at 11:59 p.m. ET on Dec. 31.

Tendered notes may be withdrawn prior to the early participation date.

Global Bondholder Services Corp. (866 873-6300 or 212 430-3774 for banks and brokers) is the information agent.

Based in Philadelphia, Radian provides private mortgage insurance and related risk mitigation products and services to mortgage lenders through its principal operating subsidiary, Radian Guaranty Inc.

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