Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) In June 2005, we issued $250 million of unsecured senior notes. These notes bear interest at the rate of  5.375% per  annum, payable semi-annually on June 15 and December 15.  The notes mature on June 15, 2015. We have the option to redeem  some or all of the notes at any time with not less than 30 days’  notice at a redemption price equal to the greater of the principal  amount of the notes or the sum of the present values of the remaining scheduled payments of principal and interest on the notes  to be redeemed.  On December 3, 2012, Radian Groupcommenced an offer to eligible holders to exchange any and all of its outstanding  5.375% Senior Notes due June 15, 2015 (previously defined as the “Old Notes”) for a new series of 9.000% Senior Notes due  June 15, 2017 (previously defined as the “New Notes”) and additional cash consideration in certain circumstances  (previously  defined as the “Exchange Of fer”) for purposes of improving its debt maturity profile.  The total exchange consideration received  by tendering eligible holders of the Old Notes consisted of: (i) an equal principal amount of New Notes for each $1,000  principal amount of outstanding Old Notes tendered and accepted; and (ii) an early participation payment of $25.00 in cash for  each $1,000 principal amount of Old Notes tendered and accepted, paid only to eligible holders who tendered their Old Notes  on or before December 14, 2012. In addition, eligible holders whose Old Notes were accepted for exchange, received a cash  payment representing accrued and unpaid interest for such Old Notes from December 15, 2012, the most recent payment date  for interest on the Old Notes to, but not including, the settlement date, January 4, 2013.  The Exchange Offer expired on  December 31, 2012. Of the $250 million aggregate principal amount of Old Notes that was outstanding as of December 3,  2012, an aggregate principal amount of $195.2 million was validly tendered. On January 4, 2013,  we delivered in exchange for  the Old Notes tendered in the Exchange Of fer, an aggregate principal amount of $195.2 million of New Notes, as well as $0.6  million in accrued and unpaid interest on the exchanged Old Notes. In accordance with the terms of the Exchange Of fer, we  also paid additional aggregate cash consideration of $4.9 million in respect of $195.2 million aggregate principal amount of  Old Notes tendered before December 14, 2012.  Both the notes issued in February 2003, the notes issued in June 2005 and the New Notes issued in January 2013 have  covenants customary for securities of this nature, including covenants related to the payments of the notes, reports, compliance  certificates, modification of the covenants and the Company maintaining its of fice or agency and existence. Additionally, the  indentures governing these notes include covenants restricting the Company from encumbering the capital stock of a  designated subsidiary (as defined in the respective indentures for the notes) or disposing of any capital stock of any designated  subsidiary unless either all of the stock is disposed of or the Company retains more than  80% of the stock with ordinary voting  rights. In November 2010, we issued $450 million principal amount of 3.000% convertible, unsecured senior notes due  November 15, 2017 (the “2017 Convertible Senior Notes”) and received proceeds of  $391.3 million, which was net of  underwriting expenses and the cost of the capped call as discussed further below . Interest is payable semi-annually on May 15  and November 15 of each year. These notes also have standard covenants related to the payments of the notes, reports,  compliance certificates, modification of the covenants and the Company maintaining its corporate existence. Holders of these notes may convert their notes from  August 15, 2017 up to the close of business on the second scheduled  trading day immediately preceding the maturity date (the “Conversion Period”), subject to certain conditions. Upon a  conversion, we will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver , as the case  may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, in respect  of the remainder, if any, of our conversion obligation that is in excess of the aggregate principal amount of the notes being  converted. The conversion rate initially is 85.5688 shares of our common stock per $1,000 principal amount of notes  (corresponding to an initial conversion price of approximately  $11.69 per share of common stock). The conversion rate is  subject to adjustment in certain events, but is not adjusted for any accrued and unpaid interest. In addition, following certain  corporate events, we will increase the conversion rate for a holder who elects to convert their notes in connection with that  corporate event in certain circumstances.  237