Radian Announces Closing of $353 Million Mortgage Insurance-Linked Notes Transaction
05 Ottobre 2023 - 10:30PM
Business Wire
Radian Group Inc. (NYSE: RDN) today announced that its wholly
owned subsidiary, Radian Guaranty Inc. has obtained $353 million of
fully collateralized excess of loss reinsurance coverage from Eagle
Re 2023-1 Ltd. (Eagle Re). The excess of loss reinsurance covers
eligible mortgage insurance policies written by Radian Guaranty
from April 1 to December 31, 2022. 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 four
classes of mortgage insurance-linked notes (ILNs) with a 10-year
maturity and 5-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 four
classes:
- $110,337,000 Class M-1A Notes with a coupon equal to one-month
SOFR plus 200 basis points
- $145,644,000 Class M-1B Notes with a coupon equal to one-month
SOFR plus 395 basis points
- $75,029,000 Class M-2 Notes with a coupon equal to one-month
SOFR plus 520 basis points
- $22,067,000 Class B-1 Notes with a coupon equal to one-month
SOFR plus 685 basis points
After closing, investors have the option to exchange their M-1B
Notes for proportionate interests in Class M-1B-1 Notes, Class
M-1B-2 Notes and Class M-1B-3 Notes (Exchangeable Notes), and the
Exchangeable Notes may be exchanged for Class M-1B Notes with the
same proportionate interest.
The Notes have been assigned ratings by DBRS, Inc. (DBRS
Morningstar) of BBB (low) (sf) for Class M-1A; BB (sf) for Class
M-1B; B (high) (sf) for Class M-2; and B (sf) for Class B-1
(sf).
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 and
homegenius.com to learn more about how Radian and its pioneering
homegenius platform are building a smarter future for mortgage and
real estate services.
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version on businesswire.com: https://www.businesswire.com/news/home/20231005402155/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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