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04/11/2019

Radian Announces Closing of $562 Million Mortgage Insurance-Linked Notes Transaction

PHILADELPHIA--(BUSINESS WIRE)--Apr. 11, 2019-- Radian Group Inc. (NYSE: RDN) today announced that its wholly owned subsidiary, Radian Guaranty Inc., has obtained $562 million of credit risk protection from Eagle Re 2019-1 Ltd. through the issuance by Eagle Re of mortgage insurance-linked notes (ILNs) to eligible third-party capital markets investors in an unregistered private offering. Eagle Re is a special purpose insurer domiciled in Bermuda and is not a subsidiary or affiliate of Radian Guaranty.

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Eagle Re has funded its reinsurance obligations by issuing four classes of ILNs which have a 10-year maturity with a 7-year call option. The ILNs are non-recourse to Radian Group or its subsidiaries and affiliates.

The ILNs issued by Eagle Re consist of the following four classes:

  • $107,054,000 Class M-1A Notes with a coupon equal to one-month LIBOR plus 125 basis points
  • $176,640,000 Class M-1B Notes with a coupon equal to one-month LIBOR plus 180 basis points
  • $235,520,000 Class M-2 Notes with a coupon equal to one-month LIBOR plus 330 basis points
  • $42,822,000 Class B-1 Notes with a coupon equal to one-month LIBOR plus 450 basis points

The Notes have been assigned ratings of BBB+ for Class M-1A; BBB- for Class M-1B; BB- for Class M-2; and B+ for Class B-1 by Morningstar Credit Ratings LLC.

“We were once again pleased with the strong market demand for our ILN transaction,” said Radian’s Chief Executive Officer Rick Thornberry. “The successful execution of Eagle Re 2019-1 is indicative of both the quality of the mortgage insurance we have written and the increasing breadth and depth of investors interested in this asset class.”

Additional information about the ILN reinsurance transaction may be found on the Investors section of Radian’s website at https://www.radian.biz/page?name=Presentations.

About Radian

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, real estate, and title services. We are powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk. Learn more about Radian’s financial strength and flexibility at www.radian.com and visit www.radian.com to see how Radian is shaping the future of mortgage and real estate services.

Forward-Looking Statements

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. 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 where new risks emerge from time to time and it is not possible for us to predict all risks that may affect us. 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 our Annual Report on Form 10-K for the year ended December 31, 2018, and subsequent reports filed from time to time with the U.S. Securities and Exchange Commission.

Source: Radian Group Inc.

Emily Riley – Phone: 215.231.1035
Email: emily.riley@radian.com