Note 16 - Capital Stock (Notes)

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Capital Stock

In June 2015, we entered into privately negotiated agreements with certain of the holders of our Convertible Senior Notes due 2017 to purchase an aggregate principal amount of $389.1 million of our outstanding Convertible Senior Notes due 2017 for a combination of cash and shares of Radian Group common stock. We funded the purchases with $126.8 million in cash (plus accrued and unpaid interest due on the purchased notes) and by issuing to the sellers approximately 28.4 million shares of Radian Group common stock. In connection with our purchases of Convertible Senior Notes due 2017, we terminated a corresponding portion of the capped call transactions we had entered into in 2010 related to the initial issuance of the Convertible Senior Notes due 2017. As a result of this termination, we received total consideration of approximately $54.9 million, consisting of 2.3 million shares of Radian Group common stock and $12.0 million in cash. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares.

On June 18, 2015, we reported that our board of directors had authorized an ASR program to repurchase an aggregate of approximately $202 million of Radian Group common stock. During the three-month period ended June 30, 2015, 9.2 million initial shares were repurchased under this program. All share repurchases made to date were funded from the proceeds of the Senior Notes due 2020.

Under the ASR program, the total number of shares ultimately delivered to Radian Group will be based on the average of the daily volume-weighted average price of Radian Group common stock during the term of the transaction, less a negotiated discount and subject to certain other adjustments pursuant to the terms and conditions of the program. If the adjusted average price of Radian Group common stock during the term of the transaction is higher than the initial repurchase price, Radian Group may be required to make an adjustment payment, which it may make, at its election, in cash or in shares of Radian Group common stock. If an adjustment payment is required from the counterparty, the counterparty may be required to deliver to Radian Group additional shares of Radian Group common stock or, at our election under certain circumstances, a combination of Radian Group common stock and cash. Final settlement of the ASR program is expected to occur in October 2015, and may occur earlier at the option of the counterparty to the agreement.

We also may purchase shares on the open market to meet option exercise obligations and to fund 401(k) matches and purchases under our ESPP.