NEW YORK, March 7 /PRNewswire-FirstCall/ -- Radian Asset Assurance Inc., a
leading provider of municipal bond insurance and financial guaranty services
and subsidiary of Radian Group Inc. (NYSE: RDN), today announced that it has
insured a recently completed $75 million funding facility from Balboa Capital
Corporation, a privately owned provider of equipment lease financing services
to small and mid-sized businesses. This transaction reflects Radian's
continued focus on expanding its core financial guaranty capabilities in a
variety of asset classes, including equipment finance.
Irvine, California-based Balboa Capital's facility, which was financed by
RBS Greenwich Capital Markets, is structured as a revolving balance sheet
financing. Balboa will use the facility to fund transactions originated by the
company's U.S.-based direct, vendor and broker channels.
"As the only AA-rated financial guarantor, Radian is in a unique position
to participate in profitable structured finance transactions such as
Balboa's," said Mark Mylon, Radian's senior vice president and executive
managing director, Global Structured Products. "By working with Balboa Capital
and RBS Greenwich, we're able to leverage our core, proven risk management
capabilities to help our customers and partners enhance their products. We
look forward to working with organizations like Balboa and RBS Greenwich to
continue to expand in this exciting asset class."
As of December 31, 2004, Radian had $14.2 billion risk in force through
direct structured finance products, which represented a 31 percent increase
from December 31, 2003, when Radian held $10.8 billion risk in force through
its direct structured finance products.
"This deal emphasizes Radian's commitment to diversification in our
business," said Mylon. "It also reaffirms our ability to build on our
foundation of strong risk management strategies and disciplined execution."
About Radian Asset Assurance Inc.
Radian Asset Assurance Inc. is a financial guaranty subsidiary of Radian
Group Inc. (NYSE: RDN), a global credit enhancement company headquartered in
Philadelphia. With offices in New York City and London, Radian Asset Assurance
is a direct writer of municipal bond insurance and insurance of asset-backed
securities and structured transactions, which extend insurance benefits to an
array of institutions and securities issuers. Additional information may be
found at http://www.radian.biz.
All statements in this press release that address our plans and strategies
for 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. The forward-looking statements are subject to
risks and uncertainties including the following: intense competition from
others and from alternative products to financial guaranty insurance; changes
in general financial and political conditions, such as extended national or
regional economic recessions (or expansions), changes or volatility in
interest rates; changes in investor perception of the strength of financial
guaranty providers, and risks faced by the businesses, municipalities or pools
of assets covered by Radian's insurance; the loss of significant customers
with whom Radian has a concentration of its insurance in force; increased
severity or frequency of losses associated with certain Radian products that
are riskier than traditional municipal guaranty insurance policies; downgrades
of the insurance financial-strength ratings assigned by the major ratings
agencies to Radian's operating subsidiaries; legislative and regulatory
changes affecting demand for financial guaranty insurance; changes in Radian's
ability to maintain sufficient reinsurance capacity in an increasingly
concentrated reinsurance market; and the loss of executive officers or other
key personnel. Investors are also directed to other risks discussed in
documents filed by Radian with the SEC, including the factors detailed in our
most recent annual report on Form 10-K in the section immediately preceding
Part I of the report. Radian does not intend to and disclaims any duty or
obligation to update or revise any forward-looking statements made in this
press release to reflect new information, future events or for any other
reason.
SOURCE Radian Asset Assurance Inc.
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Related links:
http://www.radian.biz
CONTACT:
Investors: Mona Zeehandelaar,
+1-215-231-1674, mona.zeehandelaar@radian.biz, or Media: David
Cheung, +1-215-231-1362, david.cheung@radian.biz, both of Radian
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