Radian Group shops $300 million five-year notes; pricing expected Tuesday

By Paul Deckelman

New York, June 15 – Radian Group Inc. (current ratings B2/B) plans to sell $300 million of five-year senior unsecured notes, with pricing expected on Tuesday, high-yield syndicate sources said Monday.

The Securities and Exchange Commission-registered public offering will be brought to market via joint bookrunning managers Goldman Sachs & Co., BofA Merrill Lynch and Deutsche Bank Securities Inc.

Marketing to potential investors began with a presentation in New York on Monday, including a luncheon and a midday conference call, and will continue in Boston on Tuesday, with pricing expected thereafter. It is also being marketed via Netroadshow.

The notes will be non-callable for the life of the issue, other than via a make-whole call.

Radian, a Philadelphia-based mortgage insurance company, plans to use the proceeds from the bond deal, along with shares of its common stock, to purchase some of its outstanding 3% convertible notes due 2017 – it had $381.02 million outstanding as of March 31 – and after that to repurchase some of the common stock the company may issue in connection with such purchases, and otherwise for general corporate purposes.

As of March 31, Radian had some $1.22 billion of long-term debt on its balance sheet; besides the aforementioned convertibles, its capital structure also included $192.87 million of 9% senior notes due 2017, $345.08 million of 2.25% convertible notes due2019 and $300 million of 5½% senior notes due 2019. The company also had $1.27 billion of cash and equivalents at March 31, according to its latest regulatory filing.

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