Radian's planned $200 million convertibles due 2019 now talked at revised 2.5% yield, up 30%

By Rebecca Melvin

New York, Feb. 26 - Price talk on Radian Group Inc.'s planned $200 million offering of convertible senior notes due 2019 was said to be revised to a 2.5% yield with a 30% initial conversion premium, according to a market source.

Radian underwriters could not be reached by Prospect News' deadline to confirm the revisions.

The revised talk was beyond the tight end of original talk for the coupon, which was 3% to 3.5%, and at the tight end of original 25% to 30% premium talk. The deal was seen pricing late Wednesday.

Even after the revision, the Philadelphia-based mortgage insurer's deal was seen trading at as high as 104 in the gray market ahead of final terms being fixed.

As previously reported, the registered deal has a $30 million greenshoe and was being sold via joint bookrunners Morgan Stanley & Co. LLC and Goldman Sachs & Co.

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

There is a concurrent offering of 30 million shares of common stock.

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

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