Radian Announces Redemption of its 2.25% Convertible Senior Notes due 2019
November 28 2016 - 4:15PM
Business Wire
Radian Group Inc. (NYSE: RDN) announced today that it is
exercising its option to redeem its 2.25% Convertible Senior Notes
due 2019 (the “Notes”), of which an aggregate principal amount of
approximately $68.0 million is outstanding. The redemption date
will be January 27, 2017 (the “Redemption Date”). The redemption
price is equal to $1,000 per $1,000 principal amount of the Notes,
plus accrued and unpaid interest from the last interest payment
date on September 1, 2016, up to, but excluding, the Redemption
Date. In lieu of receiving the redemption price, holders of the
Notes may surrender their Notes for conversion at any time before
5:00 p.m., Eastern time, on January 26, 2017. The conversion rate
of the Notes is 94.3396 shares of the company’s common stock per
$1,000 principal amount of Notes.
The company has elected to settle all Notes surrendered for
conversion or redemption with cash, and expects to fund the payment
of the redemption, as well as any Notes surrendered for conversion,
using available liquidity. As of September 30, 2016, Radian Group
maintained $483 million of available liquidity. When completed,
this transaction will reduce the company’s total number of diluted
shares by approximately 6.4 million shares, and bring the total
reduction in diluted shares related to the company's 2016 capital
actions, including the share repurchase completed in the first
quarter, to approximately 29.5 million shares.
“We have made significant progress in achieving the capital plan
we outlined late last year to improve our capital structure,
including removing the convertible notes and distributing our debt
maturities more evenly,” said Radian’s Chief Financial Officer
Frank Hall. “The combination of our capital actions in 2016, once
completed, will reduce our total number of diluted shares by
approximately 12%, and we continue to make strides in returning to
investment grade ratings at the holding company.”
The press release is for information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy
any security of the company, nor will there be any sale of any such
security in any jurisdiction in which such offer, sale or
solicitation would be unlawful.
ABOUT RADIAN
Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia,
provides private mortgage insurance, risk management products and
real estate services to financial institutions. Radian offers
products and services through two business segments:
- Mortgage Insurance, through its
principal mortgage insurance subsidiary Radian Guaranty Inc. This
private mortgage insurance protects lenders from default-related
losses, facilitates the sale of low-downpayment mortgages in the
secondary market and enables homebuyers to purchase homes more
quickly with downpayments less than 20%.
- Mortgage and Real Estate Services,
through its principal services subsidiary Clayton, as well as Green
River Capital, Red Bell Real Estate and ValuAmerica. These
solutions include information and services that financial
institutions, investors and government entities use to evaluate,
acquire, securitize, service and monitor loans and asset-backed
securities.
Additional information may be found at www.radian.biz.
FORWARD-LOOKING STATEMENTS
Some of the statements in this press release may constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities and
Exchange Act of 1934 and the United States Private Securities
Litigation Reform Act of 1995. Words such as ‘will,” “intends,”
“expects,” “believes” and similar expressions are used to identify
these forward-looking statements. These statements are made on the
basis of management's current views and assumptions with respect to
future events. Any forward-looking statement is not a guarantee of
future performance and actual results could differ materially from
those contained in the forward-looking statement. These statements
speak only as of the date they were made, and we undertake no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
We operate in a changing environment. New risks emerge from time to
time and it is not possible for us to predict all risks that may
affect us. The forward-looking statements, as well as our prospects
as a whole, are subject to risks and uncertainties that could cause
actual results to differ materially from those set forth in the
forward-looking statements. For more information regarding these
risks and uncertainties as well as certain additional risks that we
face, you should refer to the Risk Factors detailed in Item 1A of
Part I of our Annual Report on Form 10-K for the year ended
December 31, 2015 and subsequent reports and registration
statements filed from time to time with the Securities and Exchange
Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20161128006014/en/
Radian Group Inc.Emily Riley,
215-231-1035emily.riley@radian.biz
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