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Radian may seek C-Bass sale, draws on bank line
NEW YORK (Reuters) - Bond and mortgage insurer Radian Group Inc (RDN.N), which terminated its merger agreement with MGIC Investment Corp (MTG.N) earlier Wednesday, said the sale of its stake in subprime mortgage investment venture C-Bass "remains a possibility."
Radian, which has been hit by the severe downturn in housing and mortgage markets, also told analysts that it drew down $200 million from a $400 million credit line.
During a conference call to discuss its outlook as a stand-alone company. Radian said full impairment of its investment in C-Bass is possible "but not a certainty." The significant impairment will be recognized in its third quarter results.
Philadelphia-based Radian also will pursue the sale of its stake in Sherman Financial Group, which buys distressed consumer debt.
The credit line draw and the Sherman sale will help boost capital that backs the mortgage insurance business, Radian said.
