Secondary markets

Radian's Insurance Unit Redeems $325M Surplus Note Early

July 06, 2016, 1:13 p.m. EDT 1 Min Read

Radian Guaranty has redeemed the $325 million surplus note due to its parent company, Radian Group Inc. in Philadelphia.

The redemption, which was approved by the Pennsylvania Insurance Department, has allowed Radian Group to improve its liquidity position. The company now holds more than $700 million in available liquidity, some of which will be funneled into a $125 million share repurchase program.

The $325 million surplus note was issued to Radian Guaranty in December to help the insurer meet the Private Mortgage Insurer Eligibility Requirements, which went into effect Dec. 31. The country's seven private mortgage insurers must meet these capital standards to write policies on loans purchased by Fannie Mae and Freddie Mac.

The note was scheduled to come due Dec. 31, 2025, but Radian said at the time it was issued that it expected to redeem the note early.

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Secondary markets

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