Radian Prices Offering of Common Stock; Increases Size and Prices Concurrent Offering of Senior Notes
PHILADELPHIA--(BUSINESS WIRE)--May 7, 2014--
Radian Group Inc. (NYSE: RDN) announced today that it has priced its
previously announced public offering of 15,500,000 shares of its common
stock (the “Common Stock Offering”) at $14.50 per share, and has priced
its concurrent public offering of senior unsecured notes due 2019 and
increased the size of that offering from $200 million aggregate
principal amount to $300 million aggregate principal amount (the “Notes
Offering” and, collectively with the Common Stock Offering, the
“Offerings”). Goldman, Sachs & Co. is acting as book-running manager for
the Offerings, and J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC,
Keefe, Bruyette & Woods, Inc., and Macquarie Capital (USA) Inc. are
acting as co-managers in the Common Stock Offering. In connection with
the Common Stock Offering, the underwriters have a thirty-day option to
purchase up to an additional 2,325,000 shares of common stock. The
Offerings are expected to close on May 13, 2014, subject to customary
closing conditions.
The notes will be unsecured senior obligations of Radian Group Inc. The
notes will pay interest semi-annually on June 1 and December 1 at a rate
of 5.50% per year, and will mature on June 1, 2019.
The Company intends to use the net proceeds from the Offerings to fund
the purchase price and related expenses of its pending acquisition of
Clayton Holdings LLC, to fund the early redemption of Radian Group’s
5.375% Senior Notes due June 2015 and for working capital.
Neither the Common Stock Offering nor the Notes Offering will be
contingent on the completion of the other offering or on the completion
of the Clayton acquisition.
The Offerings are being conducted as separate public offerings pursuant
to an effective registration statement (including a base prospectus)
under the Securities Act of 1933, as amended. Before making an
investment, potential investors should first read the prospectus
supplement and accompanying prospectus, the registration statement and
the other documents that Radian Group filed or will file with the
Securities and Exchange Commission in connection with the applicable
Offering. A copy of the preliminary prospectus supplement and the
accompanying prospectus for each of the Common Stock Offering and the
Notes Offering has been filed with the SEC and is available for free on
the SEC’s website, www.sec.gov.
Alternatively, copies may be obtained from Goldman, Sachs & Co., Attn:
Prospectus Department, 200 West Street, New York, NY 10282, by calling
(866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com.
This press release is for informational 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. Each of the Offerings may be made only by means of a
prospectus supplement and accompanying base prospectus.
About Radian
Radian Group Inc., headquartered in Philadelphia, provides private
mortgage insurance and related risk mitigation products and services to
mortgage lenders nationwide through its principal operating subsidiary,
Radian Guaranty Inc. These services help promote and preserve
homeownership opportunities for homebuyers, while protecting lenders
from default-related losses on residential first mortgages and
facilitating the sale of low-down payment mortgages in the secondary
market.
Source: Radian Group Inc.
Radian Group Inc.
Emily Riley, 215-231-1035
emily.riley@radian.com
