Radian Group (RDN)

[Enterprising Investor]

RDN Increases Size and Announces Pricing of Concurrent Offerings of Common Stock and Convertible Senior Notes (2/27/13)

Radian Group Inc. (NYSE: RDN) announced today that it has increased the size of and priced its concurrent underwritten public offerings of 34 million shares of its common stock (the “Common Stock Offering”) at a public offering price of $8.00 per share and $350 million aggregate principal amount of its convertible senior notes due 2019 (the “Convertible Notes Offering” and, collectively with the Common Stock Offering, the “Offerings”). Morgan Stanley & Co. LLC and Goldman, Sachs & Co. have acted as joint book-running managers for the Offerings, Dowling & Partners Securities, LLC, Keefe, Bruyette & Woods, Inc., Macquarie Capital (USA) Inc. and Wells Fargo Securities, LLC have acted as co-managers for the Common Stock Offering and Keefe, Bruyette & Woods, Inc. has acted as co-manager for the Convertible Notes Offering. In connection with the Offerings, the underwriters have the option to purchase an additional 5.1 million shares of common stock and an additional $50 million principal amount of notes from the Company at the public offering price, less underwriting discounts and commissions, within 30 days. The Offerings are expected to close on March 4, 2013, subject to customary closing conditions.

The notes will be the Company’s unsecured senior obligations. The notes will pay interest semi-annually on March 1 and September 1 at a rate of 2.25% per year, and will mature on March 1, 2019.

Prior to December 1, 2018, the notes will be convertible only upon specified events and during specified periods and, thereafter, at any time. The notes will initially be convertible at a conversion rate of 94.3396 shares of the Company’s common stock per $1,000 principal amount of notes, corresponding to an initial conversion price of approximately $10.60 per share of the Company’s common stock. The conversion rate will be subject to adjustment upon certain events, but will not be adjusted for accrued and unpaid interest. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s option. The Company will have the right to redeem all or part of the notes on or after March 8, 2016 if the last reported sale price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period.

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 its mortgage insurance business.

The shares and the notes will be issued pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission (the “SEC”) on Form S-3 and declared effective on August 20, 2012. The Offerings are being made by means of a prospectus and related prospectus supplements. A copy of the 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: http://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 [phone] or by emailing [e-mail], and from Goldman, Sachs & Co., Attn: Prospectus Department, 200 West Street, New York, NY 10282, by calling [phone] or by emailing [e-mail].

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.

[Enterprising Investor]

RDN: getting financially stronger every day.

[56Chevy]

Radian Announces Concurrent Offerings of Common Stock and Convertible Senior Notes

Date : 02/25/2013 @ 4:21PM
Source : Business Wire
Stock : Radian Grp. Inc. (RDN)
Quote : $8.15 0.2 (2.52%) @ 5:48PM (pps as of 2/25/2013)

Radian Group Inc. (NYSE: 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 [phone] or by emailing [e-mail] and from Goldman, Sachs & Co., Attn: Prospectus Department, 200 West Street, New York, NY 10282, by calling [phone] or by emailing [e-mail].

[....]

http://ih.advfn.com/p.php?pid=nmona&article=56450449

[Enterprising Investor]

Lou was pointing out that I (EI) follow both firms.

I have NCT and damn happy about it but wish I had picked this up too!

[lonay]

Watching close for any premarket dip to see if the shorts are gonna make a stab at it. Its due and after Cramer did his show on it , it only will be a matter of time. JMO

[SaltyMutt]

All this and they remain #1 in market share. This isn't a business you sell...you might take profits from time to time...but you get back in it when its on sale ...and stay the course until the story changes imo.

It doesn't look like the story is going to change on RDN anytime soon. It was certainly a mistake on my part not getting into this one when it was a little above 2.00 pps just a few weeks back.

[RBKissMyAs]

EI ? Don't know what that is.

[LouMannheim]

I can spot a trend. Both are companies that EI follows.

[RBKissMyAs]

Like a rocket. I have NCT and damn happy about it but wish I had picked this up too!

[idkmybffjill]

Radian Reports Fourth Quarter and Full Year 2012 Financial Results

Radian Group Inc. (RDN) today reported a net loss for the quarter ended December 31, 2012, of $177.3 million, or $1.34 per diluted share, which included minimal net gains on investments and combined net gains from the change in fair value of derivatives and other financial instruments as well as an income tax provision of $20.5 million. This compares to a net loss for the quarter ended December 31, 2011, of $121.5 million, or $0.92 per diluted share, which included net gains on investments of $38.9 million, combined net gains from the change in fair value of derivatives and other financial instruments of $102.2 million and an income tax provision of $65.4 million. The net loss for the full year 2012 was $451.5 million, or $3.41 per diluted share, which included net gains on investments of $184.9 million and combined net loss from the change in fair value of derivatives and other financial instruments of $226.3 million as well as an income tax provision of $7.3 million. This compares to net income for the year ended December 31, 2011, of $302.2 million, or $2.26 per diluted share, which included net gains on investments of $202.2 million and combined net gains from the change in fair value of derivatives and other financial instruments of $821.7 million as well as an income tax provision of $66.4 million. Book value per share at December 31, 2012, was $5.51.

“In 2012, we took advantage of every opportunity to position Radian for future success, including growing our volume of new, high-quality mortgage insurance business each quarter, reducing our portfolio of delinquent loans by 16%, maintaining a competitive risk-to-capital ratio and reducing our financial guaranty exposure by 51%,” said Chief Executive Officer S.A. Ibrahim. “Although our fourth quarter results were impacted by the continuing challenge of our legacy portfolio, our ability to write new, profitable business remains undiminished.”
Ibrahim added, “We hit the ground running in 2013 with $4 billion of new business written in January and another decline in our delinquent loan inventory, which better positions Radian for a return to operating profitability.”

CAPITAL AND LIQUIDITY UPDATE
Radian Guaranty’s risk-to-capital ratio was 20.8:1 as of December 31, 2012, compared to 20.1:1 as of September 30, 2012, and 21.5:1 as of December 31, 2011.?
The change in the risk-to-capital ratio from September 30, 2012, was primarily driven by operating losses and an increase to the company’s gross risk in force resulting from strong, new mortgage insurance business volume, partially offset by external and intercompany reinsurance which decreased net risk in force.
The company expects to remain below a 25:1 risk-to-capital ratio through 2013 including, if necessary, by contributing from currently available holding company funds.
In order to proactively manage its risk-to-capital position, Radian Guaranty entered into two quota share reinsurance agreements in 2012 with the same third-party reinsurance provider. As of December 31, 2012, a total of $1.9 billion was ceded under those agreements.
The company also managed risk to capital through a new intercompany reinsurance agreement, which reduced Radian Guaranty’s net risk in force by $2.6 billion in the fourth quarter.
As of December 31, 2012, Radian Guaranty’s statutory capital was $926 million compared to $843 million a year ago.
Radian Group maintains approximately $336 million of currently available liquidity, before the repayment this month of $79 million of outstanding debt. After completion of the company’s debt exchange in January, the company has approximately $55 million of outstanding debt due in June 2015, with the balance of debt maturing in 2017.

FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
New mortgage insurance written (NIW) was $11.7 billion for the quarter, compared to $10.6 billion in the third quarter of 2012 and $6.5 billion in the prior-year quarter. Radian wrote an additional $4 billion in NIW in January 2013, compared to $2 billion in January 2012.?
The product mix of Radian’s NIW in 2012 shifted to an increased level of monthly premium business. Of the $37.1 billion in new business written in 2012, 65 percent was written with monthly premiums and 35 percent with single premiums. This compares to a mix of 59 percent monthly premiums and 41 percent single premiums in 2011.
The Home Affordable Refinance Program (HARP) accounted for $2.9 billion of insurance not included in Radian Guaranty’s NIW total for the quarter. This compares to $2.7 billion in the third quarter of 2012 and $0.7 billion in the prior-year quarter. As of December 31, 2012, approximately 9 percent of the company’s total primary mortgage insurance risk in force had successfully completed a HARP refinance.
NIW continued to consist of loans with excellent risk characteristics, with 76 percent consisting of loans with FICO scores of 740 or greater.
The mortgage insurance provision for losses was $306.9 million in the fourth quarter of 2012, compared to $171.8 million in the third quarter and $333.3 million in the prior-year period. Mortgage insurance loss reserves were approximately $3.1 billion as of December 31, 2012, which was up slightly from $3.0 billion as of September 30, 2012, and down from $3.2 billion as of December 31, 2011. First-lien reserves per primary default were $29,510 as of December 31, 2012, compared to $28,561 as of September 30, 2012, and $26,007 as of December 31, 2011.
The total number of primary delinquent loans decreased by 2 percent in the fourth quarter from the third quarter of 2012, and by 16 percent from the fourth quarter of 2011. In addition, the total number of primary delinquent loans decreased by 2 percent in January. The primary mortgage insurance delinquency rate decreased to 12.1 percent in the fourth quarter of 2012, compared to 12.6 percent in the third quarter and 15.2 percent in the fourth quarter of 2011. The company’s primary risk in force on defaulted loans was $4.3 billion in the fourth quarter, compared to $4.4 billion in the third quarter and $5.2 billion in the fourth quarter of 2011.
Total mortgage insurance claims paid were $263.4 million in the fourth quarter, compared to $272.4 million in the third quarter and $291.6 million in the fourth quarter of 2011. The company expects mortgage insurance net claims paid for the full-year 2013 of $900 million to $1.0 billion.
Radian Asset Assurance Inc. continues to serve as an important source of capital support for Radian Guaranty and is expected to continue to provide Radian Guaranty with dividends over time.?
As of December 31, 2012, Radian Asset had approximately $1.1 billion in statutory surplus with an additional $700 million in claims-paying resources.
In November, Radian Asset agreed to the commutation of its remaining reinsurance risk from Financial Guaranty Insurance Corporation (FGIC), which reduced the company’s total reinsurance portfolio by 13 percent. The commutation of the $822 million reinsurance portfolio was completed in January 2013.
Last week, Radian Asset received regulatory approval to release $61 million of contingency reserves, which will benefit Radian Guaranty's statutory capital position. The reserve release was based on a reduction in Radian Asset’s net par outstanding, resulting from the maturing of exposures and other terminations of coverage. The company had anticipated the majority of the reserve release and has included its impact in its projections of Radian Guaranty's risk-to-capital during 2013.
Radian Asset has paid a total of $384 million in dividends to Radian Guaranty since 2008, and expects to pay another dividend of approximately $35 million in 2013.
Since June 30, 2008, Radian Asset has successfully reduced its total net par exposure by 71 percent to $33.7 billion as of December 31, 2012, including large declines in many of the riskier segments of the portfolio.

Source: http://finance.yahoo.com/news/radian-reports-fourth-quarter-full-120000963.html

I'm VERY pleased with what I see here...reduction of financial guaranty exposure, debt being paid down, increased capital position, writing record NIW ($4 billion in january alone!!!), risk to capital ratio under 25:1.....the stars are lining up slowly but surely.

[idkmybffjill]

Right on target...slowly, but surely reducing their bond/CDO exposure.

[56Chevy]

Radian Completes Commutation of $827 Million Reinsurance Portfolio to FGIC

Date : 01/14/2013 @ 4:00PM
Source : Business Wire
Stock : Radian Grp. Inc. (RDN)
Quote : $6.04 -0.05 (-0.82%) @ 2:55PM

[....]

Radian Asset made the expected commutation payment of $52.4 million to FGIC following approval of the transaction by the Supreme Court of the State of New York. This payment primarily represents existing loss reserves and unearned premium reserves for the portfolio, and therefore will not have a material impact on Radian’s consolidated financial statements or Radian Asset’s statutory capital position. The commuted portfolio represents 13 percent of Radian Asset’s total reinsurance exposure as of September 30, 2012.

“We continue to make important strides in reducing Radian’s financial guaranty exposure, including many of the riskiest segments of the portfolio,” stated Chief Executive Officer S.A. Ibrahim. “We are pleased to successfully complete this latest transaction, which reduces our total reinsurance portfolio by 13 percent and supports our company’s capital management strategy.”

[....]

http://ih.advfn.com/p.php?pid=nmona&article=55836902

[AirCorps]

If we get any sort of significant selloff, especially in February if we are gearing up for another debt ceiling showoff between the GOP & Democrats, I would use it as a fantastic buying opportunity for the stock.

What is everyone's opinion on what a great entry point is for this company?

[56Chevy]

Did someone say "trends"??

RDN News: Radian Releases Delinquency Data for December

http://ih.advfn.com/p.php?pid=nmona&article=55765690

"....every day that goes by shakey mortgages/borrowers are being replaced with solid ones..."

Primary New Insurance Written ($ in billions)

For the month of Dec. 2012 - $3.85B
Total for all of 2012 - $37.1B *More than double 2011
Total for all of 2011 - $15.5B

Ending Primary Delinquent Inventory (# of loans)

Total for all of 2012 - 93,169
Total for all of 2011 - 110,861

=======

All this and they remain #1 in market share. This isn't a business you sell...you might take profits from time to time...but you get back in it when its on sale ...and stay the course until the story changes imo.

[idkmybffjill]

I think we are still not out of the woods for housing, but hopefully by then, Radian will have worked through most of the pre-2008 loans currently on its books.

I'd also expect one more bear raid on the stock from short sellers. If we get any sort of significant selloff, especially in February if we are gearing up for another debt ceiling showoff between the GOP & Democrats, I would use it as a fantastic buying opportunity for the stock. Actually, I'd be very happy if that happened

[56Chevy]

Long term - Yes I do because their story hasn't changed...but does that mean we won't see short term dips along the way? no. expect them. As you say people get spooked or are just taking profits but for now RDN is still on track.

MI business is good and every day that goes by shakey mortgages/borrowers are being replaced with solid ones and until that changes - why fix it if it isn't broken??

Proof the MI industry overall is trending up? MTG was on deaths door 6 months ago...look at it now!

[SVenorielly]

Think this trend can keep up for much longer ? I start get to get spooked, especially early in the year. But still holding.

[56Chevy]

RDN was up $2.08 for the month of December despite heightened fiscal cliff fears.

Its a great business and the story hasn't changed...stay the course.

[idkmybffjill]

Stock has had quite the run lately. Nice work RDN!

[Enterprising Investor]

RDN Announces Results of Exchange Offer (1/02/13)

PHILADELPHIA--(BUSINESS WIRE)--Radian Group Inc. (NYSE: RDN) today announced the expiration of its offer to eligible holders to exchange any and all of Radian’s outstanding 5.375% Senior Notes due June 15, 2015 (the “Old Notes”) for a new series of 9.000% Senior Notes due June 15, 2017 (the “New Notes”) and additional cash consideration, in certain circumstances (the “Exchange Offer”), for purposes of improving its debt maturity profile. The Exchange Offer, which commenced on December 3, 2012, expired in accordance with its terms at 11:59 p.m., New York City time, on December 31, 2012 (the “Expiration Date”).

Based on information provided by the exchange agent to Radian, of the $250 million aggregate principal amount of Old Notes that was outstanding as of December 3, 2012, the commencement date of the Exchange Offer, an aggregate principal amount of $195,176,000 has been validly tendered and not validly withdrawn as of the Expiration Date. On January 4, 2012, Radian expects to deliver in exchange for the Old Notes tendered in the Exchange Offer, an aggregate principal amount of $195,176,000 of New Notes, plus accrued and unpaid interest on such Old Notes. In accordance with the terms of the Exchange Offer, Radian also expects to pay additional aggregate cash consideration of $4,878,925 in respect of $195,157,000 aggregate principal amount of Old Notes tendered before 5:00 p.m., New York City time, on the early participation date of December 14, 2012.

New Notes will only be issued to holders of the Old Notes who have certified to Radian Group Inc. in an eligibility letter as to certain matters, including (i) in the United States, their status as “Qualified Institutional Buyers,” as that term is defined in Rule 144A under the Securities Act, in a private transaction in reliance upon the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof or (ii) outside the United States, that they are persons other than “U.S. persons,” as that term is defined in Rule 902 under the Securities Act, in offshore transactions in compliance with Regulation S under the Securities Act.

The New Notes have not been registered under the Securities Act or any state securities laws. Therefore, the New Notes may not be offered or sold in the United States or to any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any applicable state securities laws.

This press release is for informational purposes only and does not constitute an offer to purchase, the solicitation of an offer to purchase, or a solicitation of tenders. The information in this press release is subject in all respects to the terms and conditions set forth in the Offering Documents. The Exchange Offer is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. The Exchange Offer is being made solely pursuant to the Offering Documents, which more fully set forth and govern the terms and conditions of the Exchange Offer.

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-downpayment mortgages in the secondary market. Additional information may be found at www.radian.biz.

Contacts

Radian Group Inc.
Emily Riley, 215-231-1035
[e-mail]

http://www.businesswire.com/news/home/20130102005227/en/Radian-Announces-Results-Exchange-Offer

[Enterprising Investor]

RDN Receives Approval of RMAI Subsidiary from Freddie Mac through 2013 (12/21/12)

Company continues to write new MI business in Radian Guaranty

PHILADELPHIA--(BUSINESS WIRE)--Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc., today announced that on December 20, 2012, Freddie Mac agreed to extend its approval of Radian Mortgage Assurance Inc. (RMAI), a wholly owned subsidiary of Radian Guaranty, as a limited eligible mortgage insurer for an additional one-year period that will expire on December 31, 2013. As previously disclosed, RMAI maintains a similar approval for the same time period from Fannie Mae.

As of September 30, 2012, Radian Guaranty maintained a risk-to-capital ratio of 20.1:1, which is below the 25:1 risk-to-capital limit imposed by certain states. In the event Radian Guaranty is no longer in compliance with the risk-based capital requirements of certain states, the company plans to write new mortgage insurance business in those states through state-specific waivers or similar relief, or by using RMAI. The amended approval from Freddie Mac does not require any capital contributions from Radian Group to Radian Guaranty or RMAI beyond those required under the original approval. Based on the original approval, as previously announced, Radian Group contributed $100 million to Radian Guaranty in February 2012, and is required to contribute $50 million of additional capital to RMAI only in the event that Radian Guaranty were to exceed the risk-based capital requirements of those states for which a waiver or other relief has not been obtained. RMAI currently has $19 million of existing capital.

“Our top priority at Radian is to continue writing new, high-quality mortgage insurance business. This helps to improve the credit composition of our mortgage insurance book and better position Radian for a return to operating profitability next year,” stated Chief Executive Officer S.A. Ibrahim. “The support of our stakeholders is critical to this effort and the extension of Freddie Mac’s approval of RMAI is an illustration of that support.”

In addition to the states approved under the original agreement with Freddie Mac, the amended approval also approves RMAI to write business in Idaho provided that Radian Guaranty continues its efforts to obtain a waiver approval or denial from Idaho state insurance regulators. Further, the amended approval requires Radian Guaranty to diligently pursue an extension of existing waivers beyond their current expiration dates, including those waivers in California, Florida, Illinois and New Jersey that expire as of the end of 2012. The company has submitted requests in each of these states for an extension of the existing waivers. To the extent that any such extension is not granted, Radian Guaranty is required to seek further modification of the amended approval to allow the company to use RMAI in such states.

The amended approval with Freddie Mac includes an additional condition related to the time-frame by which Radian Guaranty evaluates and internally resolves claims. Specifically, the amended approval provides that: (1) within 120 days of the amended approval, Radian Guaranty will pay to Freddie Mac or otherwise resolve internally (e.g., through loss mitigation actions such as rescission or denial) a majority of all claims outstanding greater than 90 days; and (2) going forward, a majority of claims must be paid or otherwise resolved internally (e.g., through loss mitigation actions such as rescission or denial) within 90 days of the date the claims are perfected. The terms and conditions of the amended approval may be found on the Form 8-K filed by Radian Group Inc. with the SEC today and the original approval may be found as Exhibit 10.66 to Radian Group Inc.’s Annual Report on Form 10-K for the year ended December 31, 2011. As was the case with the original approval, Freddie Mac, in its sole discretion, may modify the terms and conditions of the amended approval or withdraw it.

About Radian

Radian Group Inc. (NYSE: RDN), 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-downpayment mortgages in the secondary market.

Forward-looking Statements

Some of the statements in this press release may constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations, estimates and projections. Words such as "will," "expects," "believes" and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events or our future financial performance that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecast in these forward-looking statements. As a result, these statements speak only as of the date they were made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 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 Part I of our Annual Report on Form 10-K for the year ended December 31, 2011, Item 1A of Part II of our Quarterly Reports on Form 10-Q filed in 2012, and subsequent reports and registration statements filed from time to time with the Securities and Exchange Commission.

Contacts

Radian Group Inc.
Emily Riley, 215-231-1035
[e-mail]

http://www.businesswire.com/news/home/20121221005947/en/Radian-Receives-Approval-RMAI-Subsidiary-Freddie-Mac

[Enterprising Investor]

RDN Announces Early Results of Exchange Offer (12/17/12)

PHILADELPHIA--(BUSINESS WIRE)--Radian Group Inc. (NYSE: RDN) today announced the early results of an offer to eligible holders to exchange any and all of Radian’s outstanding 5.375% Senior Notes due June 15, 2015 (the “Old Notes”) for a new series of 9.000% Senior Notes due June 15, 2017 (the “New Notes”) and additional cash consideration, in certain circumstances, as described below (the “Exchange Offer”), for purposes of improving its debt maturity profile.

Based on information provided by the exchange agent to Radian, of the $250 million aggregate principal amount of Old Notes that was outstanding as of December 3, 2012, the commencement date of the Exchange Offer, $195,157,000 aggregate principal amount has been validly tendered for exchange as of 5:00 p.m., New York City time, on December 14, 2012 (the “Early Participation Date”).

Pursuant to the terms and subject to the conditions set forth in the Offer to Exchange memorandum, dated December 3, 2012, and the related letter of transmittal (the “Offering Documents”), Eligible Holders who tendered their Old Notes on or prior to the Early Participation Date will receive a total exchange consideration consisting of (i) an equal principal amount of New Notes for each $1,000 principal amount of outstanding Old Notes tendered and accepted, (ii) an early participation payment of $25.00 in cash for each $1,000 principal amount of Old Notes (the “Early Participation Payment”) tendered, and (iii) a cash payment representing accrued and unpaid interest for such Old Notes from December 15, 2012, the most recent payment date for interest on the Old Notes, to, but not including, the settlement date, which is expected to be on January 4, 2013 (the third business day after the Expiration Date). The Old Notes validly tendered before or after 5:00 pm New York City time, on December 14, 2012 may not be withdrawn unless such date (or in certain circumstances the Expiration Date) is extended or unless required by law.

The Exchange Offer is being conducted upon the terms and subject to the conditions set forth in the Offering Documents. The Exchange Offer is only being made, and copies of the Offering Documents are only being made available, to holders of the Old Notes who have certified to Radian Group Inc. in an eligibility letter as to certain matters, including (i) in the United States, their status as “Qualified Institutional Buyers,” as that term is defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), in a private transaction in reliance upon the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof or (ii) outside the United States, that they are persons other than “U.S. persons,” as that term is defined in Rule 902 under the Securities Act, in offshore transactions in compliance with Regulation S under the Securities Act (“Eligible Holders”). Copies of the eligibility letter are available to holders of Old Notes through the information agent, Global Bondholder Services Corporation, at [phone] (toll free) or [phone] (for banks and brokers).

Eligible Holders that validly tender their Old Notes after the Early Participation Date and prior to the Expiration Date will not receive the Early Participation Payment but will otherwise receive the same total exchange consideration as will be received by holders that validly tendered their Old Notes on or prior to the Early Participation Date.

The Exchange Offer will expire at 11:59 p.m., New York City time, on December 31, 2012, unless extended or terminated (the “Expiration Date”).

The New Notes have not been registered under the Securities Act or any state securities laws. Therefore, the New Notes may not be offered or sold in the United States or to any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any applicable state securities laws.

This press release is for informational purposes only and does not constitute an offer to purchase, the solicitation of an offer to purchase, or a solicitation of tenders. The information in this press release is subject in all respects to the terms and conditions set forth in the Offering Documents. The Exchange Offer is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. No recommendation is made as to whether or not holders of Old Notes should exchange their Old Notes pursuant to the Exchange Offer. The Exchange Offer is being made solely pursuant to the Offering Documents, which more fully set forth and govern the terms and conditions of the Exchange Offer. The Offering Documents contain important information and should be read carefully before any decision is made with respect to the Exchange Offer.

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-downpayment mortgages in the secondary market. Additional information may be found at www.radian.biz.

Contacts

Radian Group Inc.
Emily Riley, 215-231-1035
[e-mail]

http://www.businesswire.com/news/home/20121217005345/en/Radian-Announces-Early-Results-Exchange-Offer

[idkmybffjill]

56Chevy, this is a great question. Some shorters have taken it as a desperate move, but I see it as the company being very nimble with their options.

Yes, their interest expense will go up, but it buys them two more years to make that balloon payment (the principle). And considering that the single holder of over half that debt agreed to it, I'm sure it won't be TOO hard to get the other debt holders to agree, especially in the low interest rate environment we are in right now...9% sounds preeeeeety good .

Pushing it off to 2017 gives Radian even more time to build up liquidity and cash and work through all the pre 2008 mortgages on their books.

I see it as a good move on management's part. One of those...."stings in the short run but will save us in the long run" moves.

[Enterprising Investor]

Defers $250 million principal repayment from 2015 to 2017.

[56Chevy]

Radian Group Inc. (NYSE: RDN) today announced the commencement of an offer to eligible holders to exchange any and all of Radian’s outstanding 5.375% Senior Notes due June 15, 2015 (the “Old Notes”) for a new series of 9.000% Senior Notes due June 15, 2017 (the “New Notes”) and additional cash consideration, in certain circumstances, as described below (the “Exchange Offer”) for purposes of improving its debt maturity profile. As of the date hereof, $250 million aggregate principal amount of the Old Notes are outstanding.

At first glance this seems like a good move. But is it? Raising the interest rate on debt from 5.375% to 9.0% is a hefty increase.

Seems counter-productive and expensive....so why do it?? Not sure I understand this move.

[56Chevy]

Radian Announces Offer to Exchange Outstanding Debt Securities

Radian Group Inc. (NYSE: RDN) today announced the commencement of an offer to eligible holders to exchange any and all of Radian’s outstanding 5.375% Senior Notes due June 15, 2015 (the “Old Notes”) for a new series of 9.000% Senior Notes due June 15, 2017 (the “New Notes”) and additional cash consideration, in certain circumstances, as described below (the “Exchange Offer”) for purposes of improving its debt maturity profile. As of the date hereof, $250 million aggregate principal amount of the Old Notes are outstanding.

[....]

http://ih.advfn.com/p.php?pid=nmona&article=55279861

[RBKissMyAs]

I used to trade CALVF years ago. I gave up on it. Don't spend all that $ in one place!

[bigbux1]

My CALVF @.105 is paying 2X that .005 LOL

[RBKissMyAs]

I've orders in for 4.05 to add. Come to papa!

[RBKissMyAs]

Housing starts highest in more than four years

October building permits for single-family homes up 2.2%

By Ruth Mantell, MarketWatch

Last Update: 11/20/2012 09:53:44 AM

WASHINGTON (MarketWatch) -- Construction on new homes rose in October to the
highest rate in more than four years, government data showed Tuesday, in another
sign of a strengthening U.S. housing market.

Housing starts rose 3.6% last month to a seasonally adjusted annual rate of
894,000, the highest rate since July 2008, the U.S. Department of Commerce
reported. Starts are up 42% from last year, though the rate remains far below a
bubble peak of almost 2.3 million in 2006.

"The October report is very solid and further supportive of the view that we are
in the midst of a strengthening housing recovery," said Michael Dolega, an
economist with TD Economics.

Economists polled by MarketWatch had expected a decline in housing starts to a
rate of 825,000 from an original estimate of 872,000 in September, due in part to
disruptions from Hurricane Sandy.

However, Sandy had a minimal effect because hit a relatively small portion of the
country and only at the end of the month, government analysts said. By region,
October's starts fell by 6.5% in the Northeast and by 2.5% in the South, while
rising 8.9% in the Midwest and increasing 17.2% in the West.

Meanwhile, building permits, a sign of future demand, declined 2.7% in October to
a rate of 866,000. Permits for single-family homes rose 2.2% in October to an
annual rate of 562,000, while permits for structures with at least two units fell
10.6%.

The surprisingly strong report led analysts with Macroeconomic Advisers, a St.
Louis-based research firm, to raise their estimate for economic growth in fourth
quarter by one-tenth of a percentage point to 1.3%.

"Single-family housing starts and permits were above expectations for October,
suggesting more residential investment in the fourth quarter," Macroeconomic
Advisers analysts wrote in a research note.

Housing construction will "add modestly" to economic growth for the next two
quarters, analysts at New York-based RDQ Economics wrote in a research note.

"However, with residential investment's share of GDP at 2.7%, which is only half
the share seen over the decade prior to the financial crisis, the impact on
growth is likely to be only moderate," according to RDQ analysts.

Housing gaining strength

Tuesday's report is the latest data showing a housing market gaining strength.

Existing-home sales are up nearly 11% from last year, while sentiment among home
builders stands at the highest in more than six years, according to reports
released Monday. Read more on home sales.
(http://www.marketwatch.com/News/Story/Story.aspx?guid={027EDE9E-325A-11E2-A56A-002128040CF6}&siteId=mktw)

Home prices are also on the rise.

Indeed, record-low interest rates and an economy that is adding jobs are
supporting the housing market. However, while low rates are attracting some
buyers, borrowers still face tight credit conditions.

And despite recent gains, the housing market remains far below peak levels, with
millions of workers still unemployed. About one-fifth of mortgage borrowers are
underwater, Federal Reserve Chairman Ben Bernanke noted in a recent speech.

However, with rising house prices and household formation, Goldman Sachs
economists say they expect housing starts to reach a rate of 1.5 million by the
end of 2016.

[RBKissMyAs]

Yes, relatively low prices and the lowest rates in history = BUY. I have two agents on my street and the past year has been the strongest in 5 years for them.

[Enterprising Investor]

Radian Helps Underwater Homeowners Refinance Through HARP 2.0 (11/20/12)

As program approaches one-year anniversary, more than 35,000 borrowers with Radian MI benefit from a HARP 2.0 refinance

PHILADELPHIA--(BUSINESS WIRE)--Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc., today announced its continued support of the Home Affordable Refinance program (HARP). The HARP program was first introduced in 2009 by the Federal Housing Finance Agency (FHFA) and the Department of the Treasury to help “underwater” homeowners who owe more on their mortgage than their home is worth. HARP 2.0 was announced late last year and included additional enhancements to help more homeowners take advantage of the program.

Radian has helped more than 35,000 borrowers take advantage of the newest HARP 2.0 program where, on average, homeowners are able to reduce the monthly principal and interest payment on their mortgage by more than 20 percent. Many are also using the program to pay their mortgage loan more quickly, with 18 percent of Radian’s HARP 2.0 borrowers refinancing into a 10- to 20-year term.

“At Radian, we are committed to helping homeowners stay in their homes. We are pleased to support the successful HARP refinance program, which helps borrowers who are paying their monthly mortgage payments and are committed to their homes to take advantage of today’s low interest rates,” stated Teresa Bryce Bazemore, President of Radian Guaranty.

Scott Theobald, Chief Risk Officer of Radian Guaranty, added, “The HARP program is also helping Radian to improve the credit profile of its mortgage insurance portfolio. Nearly 8% of our primary mortgage insurance risk-in-force benefited from a HARP refinance as of September 30, 2012, and 75% of the HARP refinancings in 2012 were from the 2006 – 2008 vintage years.”

Radian customers may now submit HARP-eligible loans through a secure website here: https://radian.secure.force.com/LoanModNotification. For more information about the HARP program, visit www.fhfa.gov.

Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk management 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-downpayment mortgages in the secondary market. Additional information may be found at www.radian.biz.

Contacts

Radian Group Inc.
Emily Riley, 215-231-1035
[e-mail]

http://www.businesswire.com/news/home/20121120005101/en/Radian-Helps-Underwater-Homeowners-Refinance-HARP-2.0

[Enterprising Investor]

Dividends are highly informational.

They provide insight to the fundementals of the company.

http://www.investopedia.com/articles/fundamental/03/102903.asp#axzz2ClfqCQB6

[56Chevy]

RE: housing in general, I've personally talked to more and more people looking to buy a house lately...which here in Oregons' timber/lumber country where the un-employment rate is a whopping 14% is a big deal.

The #1 thing that stood out after talking to them was I realised they described symptoms of 'renters fatigue'. It's been a tough 4 years for the country losing homes and or jobs... and they've had to either go rent an apartment/house or move in with relatives/parents...etc.etc. and they're all just really tired of it ...and are looking to get out if they can.

Low interest rates and good deals on property are certainly driving better housing numbers but I'm thinking another big motivating factor pushing people to investigate purchasing a home is the country is increasingly growing annoyed with rental life.

Having a lawn of our own for the kids to play on and for dad to mow is a big deal to our sense of happiness. I get it.

Companies like RDN stand to benefit.

[RBKissMyAs]

Got it. Regardless of of all the idiots crying that we're all going to die, RE WILL BE the hottest sector over the next year or so.

[56Chevy]

You're right RB - its peanuts ....but the amount of the dividend isn't really 'the news' here.

Think of it more as a shout out from the company to the investing world that RDN is alive and well! ...and that we're steadily marching towards better days! This is more of a moral victory than anything else.

As you're well aware any company associated with the housing/mortgage/building industry that's still standing today is a survivor ...and that's huge in my book.

[RBKissMyAs]

.0025 is that a joke?

[56Chevy]

Radian Declares Regular Quarterly Dividend on Common Stock

Date : 11/14/2012 @ 4:00PM
Source : Business Wire
Stock : Radian Grp. Inc. (RDN)
Quote : $4.01 -0.32 (-7.39%) @ 6:43PM

Radian Group Inc. today announced that the company’s Board of Directors approved a regular quarterly dividend on its common stock in the amount of $0.0025 per share, payable on December 6, 2012, to stockholders of record as of November 26, 2012.

[....]

http://ih.advfn.com/p.php?pid=nmona&article=55027645

[Enterprising Investor]

RDN Agrees to Commute $827 Million Financial Guaranty Reinsurance Portfolio to FGIC (11/12/12)

Reduces total reinsurance portfolio by 13%

PHILADELPHIA--(BUSINESS WIRE)--Radian Group Inc. today announced that on November 09, 2012, its financial guaranty insurance subsidiary, Radian Asset Assurance Inc., entered into an agreement (the “Agreement”) with Financial Guaranty Insurance Company (“FGIC”) which, if consummated, would commute the remaining $827 million of outstanding par reinsured by Radian Asset from FGIC (the “Commutation”). This portfolio represents 13 percent of Radian Asset’s total reinsurance exposure as of September 30, 2012, and includes $196 million of Radian Asset’s $225 million in net par outstanding as of September 30, 2012, related to Jefferson County, Alabama sewer warrants.

“Entering into this agreement is another example of our efforts to actively reduce our financial guaranty exposure, which is an important component of our capital management strategy,” stated Chief Executive Officer S.A. Ibrahim.

A rehabilitation proceeding for FGIC pursuant to Article 74 of the New York Insurance Law is currently pending before the Supreme Court of the State of New York (the “Court”), and the effectuation of the Commutation is subject to approval by the Court of the Agreement and certain related matters. Such approval is within the Court’s sole discretion, and no assurance can be given that the Court will grant such approval or when it will be granted. If the Court grants such approval, Radian Asset will be required to make a commutation payment to FGIC in the approximate amount of $52.4 million once that approval becomes final in accordance with the Agreement, and the Commutation will become effective upon FGIC’s receipt of such payment. The amount of this payment was determined primarily based on existing loss reserves and unearned premium reserves, and therefore is not expected to have a material impact on Radian’s consolidated financial statements or Radian Asset’s statutory capital position.

About Radian

Radian Group Inc. (NYSE: RDN), 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-downpayment mortgages in the secondary market.

Forward-looking Statements

All statements in this press 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 United States (“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,” 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 information. The forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties, including our ability to consummate the Commutation which depends on, among other things, obtaining the Court’s approval of the Agreement.

For more information regarding additional risks that we face, you should refer to the Risk Factors detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2011 and in Item 1A of Part II of our Quarterly Reports on Form 10-Q filed during 2012, and in subsequent reports and registration statements filed from time to time with the Securities and Exchange Commission.

Contacts

Radian Group Inc.
Emily Riley, 215-231-1035
[e-mail]

http://www.businesswire.com/news/home/20121112005210/en/Radian-Agrees-Commute-827-Million-Financial-Guaranty

[Enterprising Investor]

Radian Releases Delinquency Data for October (11/07/12)

Writes $3.5 billion of new mortgage insurance business

Mortgage Insurance Segment Cash Position

As of September 30, 2012, Radian’s mortgage insurance segment had cash and investments of $3.2 billion, as reported last week in the company’s press release announcing its third quarter financial results. Recently, a publication incorrectly cited various financial measures for Radian, including a misstatement that its mortgage insurance segment had a cash position of $2.1 billion.

http://www.businesswire.com/news/home/20121107005376/en/Radian-Releases-Delinquency-Data-October

[RBKissMyAs]

Low so far: 4.54. Wha'd uncle RB say? Let's see if it holds up.

[RBKissMyAs]

4.61...ALMOST THERE.

[idkmybffjill]

I'm just glad I sold $5.50 Jan covered calls lol.

[RBKissMyAs]

If they take it to 4.55, I'm awaitin'

[idkmybffjill]

Barron's scumbags. We are down 9% haaa. Wow. Knew I should've sold close to the mid 5's and accumulate more shares after it drops....Radian always finds a way to drop lol.

[RBKissMyAs]

It's a trademark Barrons hack job. I've seen it so many times. The price has shot up and gotten away from deep pockets who want to start a position or add more shares lower. How do we get it down there? Put out garbage like this. The way to play it is to buy on the tank or just ride it out if you're already in because these guys are gonna load up at the bottom. I already sold on this last spike so I welcome a backtrack to do it all over again. Barrons is doing me a favor.

[idkmybffjill]

One factual error...Barron's says reserves are $26,100 per claim.

However, as per the 10Q and 3rd quarter highlights...

First-lien reserves per primary default were $28,561 as of September 30, 2012, compared to $28,410 as of June 30, 2012, and $25,346 as of September 30, 2011.

[idkmybffjill]

Anyone have thoughts on this Barrons article?

http://online.barrons.com/article/SB50001424052748703628504578090971541049156.html?ru=yahoo&mod=yahoobarrons

Looks like the basic thesis is that Radian is rejecting way too many claims, and it will come back to bite them.

[mlkrborn]

Radian Group beats by $0.63, beats on revs (RDN) 4.69 : Reports Q3 (Sep) earnings of $0.11 per share, which included combined losses from the change in fair value of derivatives and other financial instruments of $41.8 million and net gains on investments of $84.7 million, $0.63 better than the Capital IQ Consensus Estimate of ($0.52); revenues fell 48.7% year/year to $260.79 mln vs the $224.56 mln consensus.

Radian Guaranty's risk-to-capital ratio improved to 20.1:1 as of September 30, 2012, compared to 21.0:1 as of June 30, 2012, and 20.6:1 as of March 31, 2012. The improvement in the risk-to-capital ratio from June 30, 2012, was primarily driven by investment gains partially offset by a small level of operating losses. Radian expects to remain below a 25:1 risk-to-capital ratio for the remainder of 2012.

As of September 30, 2012, Radian Guaranty's statutory capital increased to $1.0 billion, compared to $923.5 million in the second quarter of 2012 and $919.9 million in the first quarter of 2012. Radian Group maintains approximately $330 million of currently available liquidity. There is approximately $80 million of the company's outstanding debt due in February 2013.

New mortgage insurance written (NIW) was $10.6 billion for the quarter, compared to $8.3 billion in the second quarter of 2012 and $4.1 billion in the prior-year quarter. The mortgage insurance provision for losses was $171.8 million in the third quarter of 2012, compared to $208.1 million in the second quarter and $276.6 million in the prior-year period. Mortgage insurance loss reserves were approximately $3.0 billion as of September 30, 2012, which was down from $3.2 billion as of June 30, 2012, and also as of September 30, 2011.

Total mortgage insurance claims paid were $272.4 million in the third quarter, compared to $263.4 million in the second quarter and $329.9 million in the third quarter of 2011.

[RBKissMyAs]

YES! Just sold for a handsome profit! Thanks for tipping me off on this one!