Radian Announces Concurrent Offerings of Common Stock and Convertible Senior Notes

PHILADELPHIA--(BUSINESS WIRE)--

Radian Group Inc. RDN announced today that it has commenced two separate underwritten public offerings of up to 30 million shares of its common stock (the “Common Stock Offering”) and $200 million aggregate principal amount of its convertible senior notes due 2019 (the “Convertible Notes Offering” and, collectively with the Common Stock Offering, the “Offerings”). The convertible senior notes will be convertible into shares of the Company's common stock, cash or a combination of shares of common stock and cash, at the Company's election. Morgan Stanley & Co. LLC and Goldman, Sachs & Co. will act as joint book-running managers for the Offerings. The underwriters will have the option to purchase up to an additional 4.5 million shares of common stock and an option to purchase up to an additional $30 million aggregate principal amount of the convertible senior notes, within 30 days. The public offering price of the Company's common stock and the interest rate, conversion rate, and other terms of the convertible senior notes will be determined, based on market conditions, at the time of the pricing of the Offerings. The Offerings are subject to market conditions, and there can be no assurance as to whether the Offerings will be completed, or as to the actual size or terms of the Offerings.

Neither the Common Stock Offering nor the Convertible Notes Offering will be contingent on the completion of the other offering.

The Company intends to use the net proceeds from the Offerings to fund working capital requirements and for general corporate purposes, including additional capital support for our mortgage insurance business.

The Offerings are being conducted as separate public offerings pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”) on Form S-3 and declared effective on August 20, 2012. A copy of the preliminary prospectus supplement and the accompanying base prospectus for each of the Common Stock Offering and the Convertible Notes Offering has been filed with the SEC and is available for free on the SEC's website, www.sec.gov. Alternatively, copies may be obtained from Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, by calling (866) 718-1649 or by emailing prospectus@morganstanley.com and from Goldman, Sachs & Co., Attn: Prospectus Department, 200 West Street, New York, NY 10282, by calling (866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com.

This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any security of the Company, nor will there be any sale of any such security in any jurisdiction in which such offer, sale or solicitation would be unlawful. Each of the offerings may be made only by means of a prospectus supplement and accompanying base prospectus.

About Radian

Radian Group Inc., headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-down payment mortgages in the secondary market.