Radian Announces Redemption Of Its 2.25% Convertible Senior Notes Due 2019

Radian Group Inc. (NYSE: RDN) announced today that it is exercising its option to redeem its 2.25% Convertible Senior Notes due 2019 (the "Notes"), of which an aggregate principal amount of approximately $68.0 million is outstanding. The redemption date will be January 27, 2017 (the "Redemption Date"). The redemption price is equal to $1,000 per $1,000 principal amount of the Notes, plus accrued and unpaid interest from the last interest payment date on September 1, 2016, up to, but excluding, the Redemption Date. In lieu of receiving the redemption price, holders of the Notes may surrender their Notes for conversion at any time before 5:00 p.m., Eastern time, on January 26, 2017. The conversion rate of the Notes is 94.3396 shares of the company's common stock per $1,000 principal amount of Notes.

The company has elected to settle all Notes surrendered for conversion or redemption with cash, and expects to fund the payment of the redemption, as well as any Notes surrendered for conversion, using available liquidity. As of September 30, 2016, Radian Group maintained $483 million of available liquidity. When completed, this transaction will reduce the company's total number of diluted shares by approximately 6.4 million shares, and bring the total reduction in diluted shares related to the company's 2016 capital actions, including the share repurchase completed in the first quarter, to approximately 29.5 million shares.

"We have made significant progress in achieving the capital plan we outlined late last year to improve our capital structure, including removing the convertible notes and distributing our debt maturities more evenly," said Radian's Chief Financial Officer Frank Hall. "The combination of our capital actions in 2016, once completed, will reduce our total number of diluted shares by approximately 12%, and we continue to make strides in returning to investment grade ratings at the holding company."

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