Radian Announces Closing of $498 Million Mortgage Insurance-Linked Notes Transaction
22 Avril 2021 - 10:30PM
Business Wire
Radian Group Inc. (NYSE: RDN) today announced that its wholly
owned subsidiary, Radian Guaranty Inc., has obtained $498 million
of fully collateralized excess of loss reinsurance coverage from
Eagle Re 2021-1 Ltd. (Eagle Re). The excess of loss reinsurance
covers eligible mortgage insurance policies written by Radian
Guaranty in August 2020 through December 2020. 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 six
classes of mortgage insurance-linked notes (ILNs) with a 12.5-year
maturity and 7-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 six
classes:
- $82,956,000 Class M-1A Notes with a coupon equal to one-month
SOFR plus 170 basis points
- $82,956,000 Class M-1B Notes with a coupon equal to one-month
SOFR plus 215 basis points
- $165,912,000 Class M-1C Notes with a coupon equal to one-month
SOFR plus 270 basis points
- $110,607,000 Class M-2 Notes with a coupon equal to one-month
SOFR plus 445 basis points
- $27,652,000 Class B-1 Notes with a coupon equal to one-month
SOFR plus 575 basis points
- $27,652,000 Class B-2 Notes with a coupon equal to one-month
SOFR plus 625 basis points
Radian Group, an affiliate of Radian Guaranty, purchased $17.7
million of the B-1 tranche and the entire B-2 tranche.
After closing, investors have the option to exchange their M-2
Notes for proportionate interests in Class M-2A Notes, Class M-2B
Notes and Class M-2C Notes (Exchangeable Notes), and the
Exchangeable Notes may be exchanged for Class M-2 Notes with the
same proportionate interest.
The Notes have been assigned ratings by Moody’s of A3 (sf) for
Class M-1A; Baa1 (sf) for Class M-1B; Baa3 (sf) for Class M-1C; Ba3
(sf) for Class M-2; B2 (sf) for Class B-1 and B3 (sf) for Class
B-2. In addition, the Notes for Class M-1A were rated BBB (sf), and
BBB (low) (sf) for Class M-1B by DBRS, Inc. (DBRS Morningstar).
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 to learn
more about how Radian is shaping the future of mortgage and real
estate services.
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version on businesswire.com: https://www.businesswire.com/news/home/20210422005950/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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