Radian buys back $318 million 2.25%, 3% convertibles with cash, stock

By Susanna Moon

Chicago, March 21 – Radian Group Inc. said it is purchasing $288 million principal amount of its 2.25% convertible senior notes due 2019 and $30 million principal amount of its 3% convertible senior notes due 2017.

Radian entered into privately negotiated agreements with some holders to purchase the convertibles for a combination of cash and shares of Radian common stock, according to a company notice.

The company said it plans to fund the purchases with $192 million in cash plus accrued interest and by issuing about 17 million shares of common stock.

After settlement on Monday, there will be left outstanding $102 million principal amount of the 2019 convertibles and $22 million principal amount of the 2017 convertibles.

“We have taken steps to simplify and strengthen our capital structure, which improves the maturity profile of our debt and significantly reduces our number of diluted shares outstanding,” Radian chief executive officer S.A. Ibrahim said in the press release.

Radian is a Philadelphia-based mortgage insurance company.

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