Radian Guaranty Inc. (“Radian Guaranty”), the wholly owned subsidiary of Radian Group Inc. (the “Company”), intends to proceed with a capital markets-based reinsurance transaction with a newly-formed Bermuda special purpose insurer, Eagle Re2018-1 Ltd. (the “Issuer”). In connection with the proposed transaction, (i) Radian Guaranty expects to purchase approximately $410 million of excess of loss reinsurance protection from the Issuer, covering an existing portfolio of mortgage insurance policies issued by Radian Guaranty between January 2017 and December 2017 and (ii) the Issuer will simultaneously issue a like amount of unregistered securities to third party capital markets investors that are linked to the reinsurance coverage. The Issuer is not a subsidiary or affiliate of the Company.
The mortgage insurance-linked note offering is expected to close during November 2018, subject to market and other customary conditions. There can be no assurances that such offering or the related reinsurance transaction will be completed.
The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This Current Report on Form8-K shall not constitute an offer to sell or a solicitation of an offer to buy any of the aforementioned securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom, such an offer, solicitation or sale would be unlawful.
All statements in this Current Report on Form8-K 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 Exchange Act and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as “anticipate,” “may,” “will,” “could,” “should,” “would,” “expect,” “intend,” “plan,” “goal,” “contemplate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “seek,” “strategy,” “future,” “likely” or the negative or other variations on these words and other similar expressions. These statements, which may include, without limitation, projections regarding our future performance and financial condition, 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 statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment where new risks emerge from time to time and it is not possible for us to predict all risks that may affect us. The forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Item 1A of our Annual Report on Form10-K for the year ended December 31, 2017, and subsequent reports filed from time to time with the U.S. Securities and Exchange Commission. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future events or for any other reason.
