Radian Secures Waiver Under Credit Agreement
10 Abril 2008 - 12:33PM
PR Newswire (US)
PHILADELPHIA, April 10 /PRNewswire-FirstCall/ -- Radian Group Inc.
(NYSE: RDN) ("Radian") today announced that it has entered into a
waiver agreement with its lenders under its credit facility. The
agreement provides for a suspension of the ratings covenant
included in such credit facility. Radian is not currently in
default of that covenant, but has requested temporary relief from
it prospectively. The relief under the waiver agreement is intended
to provide Radian and its lenders with sufficient time to discuss a
definitive amendment to the credit agreement, which must be entered
into by April 30, 2008 to avoid reinstatement of the covenant.
Radian is currently in discussions with its lenders regarding this
amendment. During the period the waiver is in effect, Radian may
not borrow any additional amounts under the credit facility. Radian
Group Inc. is a global credit risk management company headquartered
in Philadelphia with significant operations in New York and London.
Radian develops innovative financial solutions by applying its core
mortgage credit risk expertise and structured finance capabilities
to the credit enhancement needs of the capital markets worldwide,
primarily through credit insurance products. The company also
provides credit enhancement for public finance and other corporate
and consumer assets on both a direct and reinsurance basis and
holds strategic interests in credit-based consumer asset
businesses. Additional information may be found at
http://www.radian.biz/. All statements in this news 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
U.S. Private Securities Litigation Reform Act of 1995. These
statements 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 information included in this news
release, as well as our prospects as a whole, are subject to risks
and uncertainties, including the following: A failure to obtain the
amendment referenced above within the prescribed time frame or to
satisfy the conditions required for effectiveness of such amendment
would result in a reinstatement of the ratings covenant under our
credit facility, which provides that our senior debt ratings, as
provided by S&P and Moody's, may not (1) at the same time be
lower than A- for S&P and A3 for Moody's, or (2) be lower than
either BBB for S&P or Baa2 for Moody's. We currently has been
assigned a senior debt rating of BBB (CreditWatch with negative
implications) by S&P, A2 (under review for possible downgrade)
by Moody's and A- (Ratings Watch Negative) by Fitch. If the ratings
covenant was reinstated and our credit ratings were downgraded such
that we failed to satisfy this covenant, we would be in default
under our credit agreement and the lenders representing a majority
of the debt under our credit agreement would have the right to
terminate all commitments under the credit agreement and declare
the outstanding debt due and payable. If the debt under our credit
agreement were accelerated in this manner and not repaid, the
holders of 10% or more of our publicly traded $250 million 7.75%
Debentures due in June 2011 and the holders of 25% or more of our
publicly traded $250 million 5.625% Senior Notes due in February
2013, each would have the right to accelerate the maturity of that
debt. If this were to occur, we may not have sufficient funds to
repay any such amounts. For more information regarding certain
additional risks that we face, you should refer to the Risk Factors
detailed in Part I, Item 1A of our Annual Report on Form 10-K for
the year ended December 31, 2007. We caution you not to place undue
reliance on these forward-looking statements, which are current
only as of the date of this news release. We do not intend to, and
we disclaim any duty or obligation to, update or revise any
forward-looking statements made in this news release to reflect new
information or future events or for any other reason. For
Investors: Terri Williams-Perry - phone: 215 231.1486 Email: For
the Media: Rick Gillespie - phone: 215 231.1061 Email: Steve
Frankel / Tim Lynch Joele Frank, Wilkinson Brimmer Katcher 212
355.4449 DATASOURCE: Radian Group Inc. CONTACT: Investors, Terri
Williams-Perry, +1-215-231-1486, , or Media, Rick Gillespie,
+1-215-231-1061, , both of Radian Group Inc.; or Steve Frankel, or
Tim Lynch, both of Joele Frank, Wilkinson Brimmer Katcher,
+1-212-355-4449, for Radian Group Inc. Web site:
http://www.radian.biz/
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