Radian Group to price $200 million convertible notes due 2019 to yield 3%-3.5%, up 25%-30%

By Rebecca Melvin

New York, Feb. 25 - Radian Group Inc. launched an offering of $200 million of convertible senior notes that was seen pricing after the market close Wednesday and was talked to yield 3% to 3.5% with an initial conversion premium of 25% to 30%, according to market sources.

The registered deal has a $30 million greenshoe and was being sold via joint bookrunners Morgan Stanley & Co. LLC and Goldman Sachs & Co.

There is a concurrent offering of 30 million shares of common stock and a 4.5 million share greenshoe.

The notes are non-callable for three years and are provisionally callable if the share price exceeds 130% of the conversion price.

The company plans to use the proceeds from the offerings to fund working capital requirements and for general corporate purposes, including additional capital support for their mortgage insurance business.

Radian Group is a Philadelphia-based mortgage insurance business.

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