Radian Group Inc. (the “Company”) is announcing the pricing of the offering by Eagle Re2018-1 Ltd. (“Eagle Re”), an unaffiliated special purpose insurer domiciled in Bermuda, of $434.034 million of mortgage insurance-linked notes (the “Notes”). The notes are being offered for sale to eligible third party capital markets investors in an unregistered private offering. In connection with the transaction, the Company’s wholly owned subsidiary, Radian Guaranty Inc. (“Radian Guaranty”), expects to receive approximately $434.034 million ofexcess-of-loss reinsurance protection from Eagle Re, covering an existing portfolio of eligible mortgage insurance policies issued by Radian Guaranty between January 2017 and December 2017. The offering is expected to close on November 14, 2018, subject to customary conditions. Eagle Re is not a subsidiary or affiliate of Radian Guaranty.
The mortgage insurance-linked notes to be issued by Eagle Re will consist of three classes as follows:
| | • | | $241.383 million ClassM-1 Notes with an initial interest rate ofone-month LIBOR plus 170 basis points; |
| | • | | $168.057 million ClassM-2 Notes with an initial interest rate ofone-month LIBOR plus 300 basis points; and |
| | • | | $24.594 million ClassB-1 Notes with an initial interest rate ofone-month LIBOR plus 400 basis points. |
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
