By Paul A. Harris
Portland, Ore., June 13 – Radian Group Inc. priced an upsized $450 million issue of senior bullet notes due March 15, 2027 (Ba2/BB+) at par to yield 4 7/8% in a quick-to-market Thursday trade, according to market sources.
The issue size increased from $350 million.
The yield printed at the tight end of yield talk in the 5% area and inside of initial talk in the low 5% area.
The issue was heard to have been three-times oversubscribed at its original $350 million size, a trader said.
Lead left bookrunner RBC Capital Markets LLC will bill and deliver. Goldman Sachs & Co. LLC was the joint bookrunner.
Proceeds will be used to fund the tender offers for Radian Group's 5¼% notes due 2020 and its 7% notes due 2021 and for general corporate purposes, which may include the redemption or repurchase of other debt.
Radian Group is a Philadelphia-based provider of mortgage insurance and risk management products to financial institutions.
| Issuer: | Radian Group Inc.
|
| Amount: | $450 million, increased from $350 million
|
| Maturity: | March 15, 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | RBC Capital Markets LLC
|
| Joint bookrunner: | Goldman Sachs & Co. LLC
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 289 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until six months prior to maturity, then callable at par, otherwise non-callable
|
| Trade date: | June 13
|
| Settlement date: | June 24
|
| Ratings: | Moody's: Ba2
|
| S&P: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 5% area
|
| Marketing: | Quick to market
|
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