Radian Launches Tender Offers for Money Market Committed Preferred Securities
PHILADELPHIA, Nov. 17 /PRNewswire-FirstCall/ -- Radian Group Inc. (NYSE: RDN) today announced that Radian has commenced three separate tender offers to purchase securities issued by each of the three custodial trusts related to the contingent capital program of Radian Asset Assurance Inc., Radian's principal financial guaranty subsidiary. The target securities with a face amount of $100,000 per security were issued by the three separate trusts with an aggregate face amount of $50 million issued by each trust, or an aggregate face amount of $150 million issued by all three trusts. The offer is expected to expire at 5:00 p.m., Eastern Time, on December 16, 2009, unless extended by Radian.
Pursuant to the offer, Radian or a designated subsidiary of Radian will purchase securities tendered at or before 5:00 p.m., Eastern Time, on December 16, 2009 for the tender price of $17,000 per security and will pay an early tender premium of $8,000 (for a total consideration of $25,000) per security for securities tendered at or before 5:00 p.m., Eastern Time, on December 2, 2009.
The offer with respect to each trust is expected to be conditioned upon, among other things, the purchase of a majority of the securities issued by the particular trust and the consent by the holders of a majority of the securities of such trust to certain amendments to the documents underlying the program necessary to permit the purchase by Radian. Radian's offer to purchase the securities issued by one of the trusts will not be conditioned upon the success of Radian's offers for the securities of either of the other trusts.
Goldman, Sachs & Co. will act as dealer-manager for the offers and consent solicitations and can be contacted at (800) 828-3182 (toll-free) or, for banks and brokers, (212) 902-5183. The information agent for the offers and consent solicitations is Global Bondholder Services Corporation. Requests for copies of the Purchase Offer Memorandum and Consent Solicitation Statement and related documents may be directed to Global Bondholder Services Corporation at (866) 857-2200 (toll-free) or, for banks and brokers, (212) 430-3774.
This announcement is not an offer to purchase or sell, a solicitation of an offer to purchase or sell, or a solicitation of consents with respect to any securities. The solicitation is being made solely pursuant to Radian's Purchase Offer Memorandum and Consent Solicitation Statement dated November 17, 2009 and the related Consent and Letter of Transmittal. The offer is subject to certain conditions and presents certain risks for holders who tender their securities and provide their consent, as set forth more fully in the Purchase Offer Memorandum and Consent Solicitation Statement. Radian reserves the right to amend, extend or terminate the offering.
About Radian
Radian Group Inc. (NYSE: RDN), 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-downpayment mortgages in the secondary market. Additional information may be found at www.radian.com.
Forward Looking Statements
This press release contains forward-looking statements, including statements related to Radian's plans to complete a tender offer and Radian's possible actions with respect to the tender offer. Statements that are not historical facts are based on Radian's current expectations, beliefs, assumptions, estimates, forecasts and projections. The statements contained in this release are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. The tender offer described above may not be completed, and Radian may not purchase any or all securities sought in the tender offer. Radian may amend, extend or terminate the offering. Reference should be made to Radian's Annual Report on Form 10-K for the year ended December 31, 2008 and subsequent filings made with the Securities and Exchange Commission. Radian cautions investors not to place undue reliance on the forward-looking statements contained in this release. These statements speak only as of the date of this release, and Radian undertakes no obligations to update or revise these statements, except as may be required by law.
SOURCE Radian Group Inc.
Emily Riley, +1-215-231-1035, emily.riley@radian.com
