Note 17 - Subsequent Events (Notes)

3 Months Ended

Mar. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Purchase Agreement

On May 6, 2014, Radian Group entered into a Purchase Agreement with Clayton, Paul T. Bossidy and Cobra Green LLC (“Cobra Green”), with a related guarantee of the obligations of Cobra Green by Greenfield Acquisition Partners V, L.P., an affiliate of Cobra Green. Under the Purchase Agreement, at closing Radian Group will pay aggregate cash consideration of $305 million, which includes repayment of Clayton’s outstanding debt, to purchase all of the outstanding equity interests in Clayton, subject to customary purchase price adjustments. Radian Group anticipates funding the entire purchase price and related expenses through net proceeds received from the issuance of debt and equity.

Clayton provides outsourced solutions to the mortgage industry, including a full suite of outsourced services, information-based analytics and specialty consulting for buyers and sellers of, and investors in, mortgage-related loans and securities and other debt instruments.

We expect to complete the Clayton acquisition during the summer of 2014, subject to satisfaction of customary closing conditions, including expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, receipt of certain state licensing approvals, accuracy of representations and warranties, compliance with covenants and agreements and continued employment by Clayton’s chief executive officer and its president.