Radian Announces Closing of $353 Million Mortgage Insurance-Linked Notes Transaction

Radian Group Inc. (NYSE: RDN) today announced that its wholly owned subsidiary, Radian Guaranty Inc. has obtained $353 million of fully collateralized excess of loss reinsurance coverage from Eagle Re 2023-1 Ltd. (Eagle Re). The excess of loss reinsurance covers eligible mortgage insurance policies written by Radian Guaranty from April 1 to December 31, 2022. Eagle Re is a newly formed Bermuda special purpose insurer and is not a subsidiary or affiliate of Radian Guaranty.

Eagle Re has funded its reinsurance obligations by issuing four classes of mortgage insurance-linked notes (ILNs) with a 10-year maturity and 5-year call option to eligible third-party capital markets investors in an unregistered private offering. The ILNs are non-recourse to Radian Group and its subsidiaries and affiliates.

The ILNs issued by Eagle Re consist of the following four classes:

• $110,337,000 Class M-1A Notes with a coupon equal to one-month SOFR plus 200 basis points
• $145,644,000 Class M-1B Notes with a coupon equal to one-month SOFR plus 395 basis points
• $75,029,000 Class M-2 Notes with a coupon equal to one-month SOFR plus 520 basis points
• $22,067,000 Class B-1 Notes with a coupon equal to one-month SOFR plus 685 basis points

After closing, investors have the option to exchange their M-1B Notes for proportionate interests in Class M-1B-1 Notes, Class M-1B-2 Notes and Class M-1B-3 Notes (Exchangeable Notes), and the Exchangeable Notes may be exchanged for Class M-1B Notes with the same proportionate interest.

The Notes have been assigned ratings by DBRS, Inc. (DBRS Morningstar) of BBB (low) (sf) for Class M-1A; BB (sf) for Class M-1B; B (high) (sf) for Class M-2; and B (sf) for Class B-1 (sf).

Additional information about the ILN reinsurance transaction may be found on the Investors section of Radian’s website at https://radian.com/who-we-are/for-investors/presentations.

About Radian

Radian Group Inc. (NYSE: RDN) is ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, title, valuation, asset management and other real estate services. We are powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk. Visit www.radian.com and homegenius.com to learn more about how Radian and its pioneering homegenius platform are building a smarter future for mortgage and real estate services.

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