Radian Announces Closing of $484 Million Mortgage Insurance-Linked Notes Transaction
November 09 2021 - 3:30PM
Business Wire
Radian Group Inc. (NYSE: RDN) today announced that its wholly
owned subsidiary, Radian Guaranty Inc. has obtained $484 million of
fully collateralized excess of loss reinsurance coverage from Eagle
Re 2021-2 Ltd. (Eagle Re). The excess of loss reinsurance covers
eligible mortgage insurance policies written by Radian Guaranty
predominantly from January 1, 2021 through and including July 31,
2021. Eagle Re is a newly formed Bermuda special purpose insurer
and is not a subsidiary or affiliate of Radian Guaranty.
Eagle Re has funded its reinsurance obligations by issuing five
classes of mortgage insurance-linked notes (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 and 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
After closing, investors have the option to exchange their M-1C
Notes for proportionate interests in Class M-1C-1 Notes, Class
M-1C-2 Notes and Class M-1C-3 Notes (Exchangeable Notes), and the
Exchangeable Notes may be exchanged for Class M-1C Notes with the
same proportionate interest.
The Notes have been assigned ratings by Moody’s of Baa1 (sf) for
Class M-1A; Baa3 (sf) for Class M-1B; Ba2 (sf) for Class M-1C and
B2 (sf) for Class M-2. In addition, the Notes have been assigned
ratings by DBRS, Inc. (DBRS Morningstar) of BBB (high) (sf) for
Class M-1A; BBB (low) (sf) for Class M-1B; BB (sf) for Class M-1C;
B (high) (sf) for class M-2 and B (sf) for Class B-1.
Additional information about the ILN reinsurance transaction may
be found on the Investors section of Radian’s website at
https://radian.com/who-we-are/for-investors/presentations.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20211109006553/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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