Radian Announces Pricing of $484 Million Mortgage Insurance-Linked Notes Transaction
November 01 2021 - 5:30AM
Business Wire
Radian Group Inc. (NYSE: RDN) today announced the pricing of
$484 million aggregate principal amount of 12.5-year mortgage
insurance-linked notes (ILNs) issued by Eagle Re 2021-2 Ltd. (Eagle
Re), a newly-formed Bermuda special purpose insurer that is not a
subsidiary or affiliate of Radian Guaranty Inc. The notes were
offered for sale to eligible third-party capital markets investors
in an unregistered private offering.
In connection with the transaction, Radian Group’s wholly owned
subsidiary, Radian Guaranty, will receive $484 million of fully
collateralized excess of loss reinsurance protection from Eagle Re
at closing, covering an existing portfolio of mortgage insurance
policies written predominantly from January 1, 2021 through and
including July 31, 2021. The excess of loss reinsurance coverage
provides Radian Guaranty protection for aggregate losses on subject
loans beginning at a 2.25% cumulative claim rate threshold and
continuing up to an eventual 6.75% aggregate detachment level.
Radian Guaranty expects to receive initial PMIERs credit for the
portion of coverage attaching within the current risk-based
required asset charge on subject loans and additional benefit in
the future if the PMIERs requirement on subject loans increases,
all subject to GSE approval. The offering is expected to close on
November 9, 2021, subject to customary conditions.
Eagle Re has funded its reinsurance obligations by issuing five
classes of ILNs with a 12.5-year maturity and 7-year call option to
eligible third-party capital markets investors in an unregistered
private offering. The ILNs are non-recourse to Radian Group or its
subsidiaries and affiliates.
The ILNs issued by Eagle Re consist of the following five
classes:
- $118,341,000 Class M-1A Notes with a coupon equal to one-month
SOFR plus 155 basis points
- $102,204,000 Class M-1B Notes with a coupon equal to one-month
SOFR plus 205 basis points
- $145,236,000 Class M-1C Notes with a coupon equal to one-month
SOFR plus 345 basis points
- $91,445,000 Class M-2 Notes with a coupon equal to one-month
SOFR plus 425 basis points
- $26,896,000 Class B-1 Notes with a coupon equal to one-month
SOFR plus 500 basis points
The securities described herein have not been and will not be
registered under the U.S. Securities Act of 1933 and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements. This press
release shall not constitute an offer to sell or a solicitation of
an offer to buy any of the aforementioned securities and shall not
constitute an offer, solicitation or sale in any state or
jurisdiction in which, or to any person to whom, such an offer,
solicitation or sale would be unlawful.
About Radian
Radian Group Inc. (NYSE: RDN) 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.
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 other 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, 2020, and subsequent reports
filed from time to time with the U.S. Securities and Exchange
Commission.
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 Annual Report on Form 10-K for the
year ended December 31, 2020, and to subsequent reports and
registration statements filed from time to time with the U.S.
Securities and Exchange Commission. We caution you not to place
undue reliance on these forward-looking statements, which are
current only as of the date on which we issued this press release.
We do not intend to, and we disclaim any duty or obligation to,
update or revise any forward-looking statements to reflect new
information or future events or for any other reason.
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version on businesswire.com: https://www.businesswire.com/news/home/20211101005274/en/
For Investors John Damian – Phone: 215.231.1383 Email:
john.damian@radian.com
For the Media Rashi Iyer – Phone: 215.231.1167 Email:
rashi.iyer@radian.com
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