News

04/30/2008

Radian Secures Amendment to Credit Agreement

PHILADELPHIA, April 30 /PRNewswire-FirstCall/ -- Radian Group Inc. (NYSE: RDN) announced today that it has successfully secured all necessary commitments for a permanent amendment to its revolving credit facility. The amendment, which will be effective upon satisfaction of certain limited closing conditions, would permanently eliminate the ratings covenant included in the current facility and would provide the Company with greater flexibility with respect to the minimum net worth that it must maintain. In return, Radian has agreed to certain other conditions and covenants, most importantly, the facility would be secured and the commitment size would be reduced from $400 million to $250 million, with further reductions to take place if certain repayment events occur.

Radian's liquidity position continues to be strong, and it is important to the Company to have this committed back-up source of liquidity, which would mature in February 2011 under the amendment. The bank group remains unchanged with Key Bank continuing to serve as agent. Radian views its banking relationships as both strong and supportive, as evidenced by the successful approval of the amendment.

On April 10, 2008, Radian announced that it had entered into a waiver agreement with its lenders to provide sufficient time to discuss the terms of a definitive amendment to the facility. Today's announcement reflects the finalization of those discussions and extends the temporary waiver provided in that April 10 agreement until May 15 or such earlier time as it is replaced by the permanent amendment.

Radian Group Inc. is a global credit risk management company headquartered in Philadelphia with significant operations in New York and London. Radian develops innovative financial solutions by applying its core mortgage credit risk expertise and structured finance capabilities to the credit enhancement needs of the capital markets worldwide, primarily through credit insurance products. The company also provides credit enhancement for public finance and other corporate and consumer assets on both a direct and reinsurance basis and holds strategic interests in credit-based consumer asset businesses. Additional information may be found at http://www.radian.com.

All statements in this news 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 Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These statements 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 information. The information included in this news release, as well as our prospects as a whole, are subject to risks and uncertainties, including the following: A failure to satisfy the conditions required for effectiveness of the amendment referenced above within the prescribed time frame would result in a reinstatement of the ratings covenant under our credit facility, which provides that our senior debt ratings, as provided by S&P and Moody's, may not (1) at the same time be lower than A- for S&P and A3 for Moody's, or (2) be lower than either BBB for S&P or Baa2 for Moody's. We currently have been assigned a senior debt rating of BBB (CreditWatch with negative implications) by S&P, A2 (under review for possible downgrade) by Moody's and A- (Ratings Watch Negative) by Fitch. If the ratings covenant was reinstated and our credit ratings were downgraded such that we failed to satisfy this covenant, we would be in default under our credit agreement and the lenders representing a majority of the debt under our credit agreement would have the right to terminate all commitments under the credit agreement and declare the outstanding debt due and payable. If the debt under our credit agreement were accelerated in this manner and not repaid, the holders of 10% or more of our publicly traded $250 million 7.75% Debentures due in June 2011 and the holders of 25% or more of our publicly traded $250 million 5.625% Senior Notes due in February 2013, each would have the right to accelerate the maturity of that debt. If this were to occur, we may not have sufficient funds to repay any such amounts. For more information regarding certain additional risks that we face, you should refer to the Risk Factors detailed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2007. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date of this news release. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements made in this news release to reflect new information or future events or for any other reason.

Contact:

For investors: Terri Williams-Perry - phone: 215.231.1486
Email: terri.williams-perry@radian.com

For the media: Rick Gillespie - phone: 215.231.1061
email: rick.gillespie@radian.com

Steve Frankel / Tim Lynch
Joele Frank, Wilkinson Brimmer Katcher
212.355.4449

SOURCE Radian Group Inc.