Radian Completes $525 Million Public Offering of Senior Notes
Radian (News - Alert) Group Inc. (NYSE: RDN) announced that the company completed its previously announced underwritten public offering of $525 million principal amount of 6.625 percent Senior Notes due 2025. Additional details regarding the transaction may be found in the company's filing on the company's Form 8-K filed on May 15, 2020.
Last week, Fitch Ratings published an 'A-' Insurer Financial Strength rating of Radian Guaranty Inc., the principal mortgage insurance subsidiary of Radian Group, and a 'BBB' Long-term Issuer Default Rating of Radian Group. Fitch also published a 'BBB-' rating of Radian Group's senior unsecured debt and the new senior debt offering. Each rating assigned is investment grade. The current ratings' negative outlook reflects Fitch's concern regarding the impact of the economic effects of the pandemic.
Chief Executive Officer Rick Thornberry commented, "For the past several years, we have been focused on enhancing our capital resources and increasing our financial flexibility. Our recently announced public offering of senior notes, which was increased from $400 million to $525 million in aggregate principal amount as a result of investor demand, is further evidence of this strategic focus, the financial strength of our company, and the confidence of the capital markets in our strategy. This transaction will, on a proforma basis, increase Radians total holding company available resources, which includes our credit facility, from $0.9 billion at March 31, 2020, to $1.4 billion, and our PMIERs excess available resources to $2.5 billion, or 86% above our Minimum Required Assets under the PMIERs as of March 31, 2020. This transaction is expected to provide Radian with additional financial flexibility and allow us to be even better positioned to successfully navigate the COVID-19 pandemic and economic environment."
RBC Capital Markets, LLC, Goldman Sachs & Co. LLC, Barclays Capital Inc., Credit Suisse Securities (USA) LLC and U.S. Bancorp Investments, Inc. acted as joint book-running managers and Samuel A. Ramirez & Company, Inc., CIBC World Markets Corp. and Loop Capital Markets LLC acted as co-managers for the offering.
Radian is ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, title, valuation, asset management and other real estate services. We are powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk. Visit www.radian.com to learn more about how Radian is shaping the future of mortgage and real estate services.
All statements in this press release that address events, developments or results that we expect or anticipate may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as "anticipate," "may," "will," "could," "should," "would," "expect," "intend," "plan," "goal," "contemplate," "believe," "estimate," "predict," "project," "potential," "continue," "seek," "strategy," "future," "likely" or the negative or other variations on these words and other similar expressions. These statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management's current views and assumptions with respect to future events. 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. 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 risks and uncertainties include our ability to successfully execute and implement our capital plans and to maintain sufficient holding company liquidity to meet our liquidity needs, in particular given the unprecedented and rapidly changing social and economic impacts associated with the COVID-19 pandemic on the U.S. and global economies generally, and especially on the U.S. housing, real estate and housing finance markets. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to "Item 1A. Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019, and to subsequent reports and registration statements filed from time to time with the U.S. Securities and Exchange Commission. We operate in a changing environment where new risks emerge from time to time and it is not possible for us to predict all risks that may affect us.
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