Radian Unit To Sell Asset Assurance Inc. To Assured Guaranty For About $810 Mln

(RTTNews) - Radian Guaranty Inc., the mortgage insurance unit of Radian Group Inc. (RDN), has reached a Stock Purchase Agreement to sell 100% of the issued and outstanding shares of Radian Asset Assurance Inc., Radian's financial guaranty insurance subsidiary, to Assured Guaranty Corp., a subsidiary of Assured Guaranty Ltd. (AGO), for about $810 million. The purchase price is payable in cash consideration on the closing date.

The stock purchase deal allows for a complete transfer of Radian Asset's $19.4 billion in net par outstanding to Assured Guaranty Corp. as of September 30, 2014. The company expects to complete the sale of Radian Asset in the first half of 2015.

Radian Chief Executive, S.A. Ibrahim said, "While Radian Asset has been an important part of our history and our success, we are committed to streamlining our business and aligning our strategy toward the mortgage and real estate markets. This agreement marks an important milestone as we prepare for finalization of the proposed PMIERs in 2015. While we expect to fully comply, the sale of Radian Asset will help to accelerate our ability to do so."

Goldman Sachs & Co. is acting as financial advisor on the sale of Radian Asset.