Radian Secures Amendment to Credit Agreement
01 Mai 2008 - 3:21AM
PR Newswire (US)
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.biz/. 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: For
the media: Rick Gillespie - phone: 215.231.1061 email: Steve
Frankel / Tim Lynch Joele Frank, Wilkinson Brimmer Katcher
212.355.4449 DATASOURCE: Radian Group Inc. CONTACT: Investors,
Terri Williams-Perry, +1-215-231-1486, , or Media, Rick Gillespie,
+1-215-231-1061, , both of Radian Group Inc.; or Steve Frankel or
Tim Lynch of Joele Frank, Wilkinson Brimmer Katcher,
+1-212-355-4449, for Radian Group Inc. Web site:
http://www.radian.biz/
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