Company Website:
http://assuredguaranty.com/
HAMILTON, Bermuda -- (Business Wire)
Bond insurance subsidiaries of Assured Guaranty Ltd. (NYSE:AGO)(together
with its subsidiaries, Assured Guaranty) and other bond insurers will
purchase $128 million of interest bearing bonds from the Puerto Rico
Electric Power Authority (PREPA). The bond proceeds will replenish a
portion of PREPA operating funds used to make the full $416 million
payment of principal and interest due to its bondholders on July 1, 2015.
“This interim solution allows PREPA to make the scheduled principal and
interest payments due July 1, giving all parties time to negotiate a
permanent, consensual restructuring,” said Dominic Frederico, President
and CEO. “Regardless of future developments, debt service payments to
holders of Assured Guaranty-insured PREPA bonds remain protected by our
guaranty.”
The participating bond insurers will fund the bond purchase on a pro
rata basis, based on the par amount of the PREPA revenue bonds coming
due on July 1, 2015 that each has insured, which is approximately $113
million for Assured Guaranty. Assured Guaranty’s pro rata cost to
purchase the new bonds before the impact of Assured Guaranty's
approximately 35% reinsurance will be $72.6 million. The Assured
Guaranty purchase will be made through Assured Guaranty Municipal Corp.
and Assured Guaranty Corp.
The final principal payment on the bonds, along with interest, is
payable on January 1, 2016.
Any forward-looking statements made in this press release reflect
Assured Guaranty’s current views with respect to future events and are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve risks and
uncertainties that may cause actual results to differ materially from
those set forth in these statements. These risks and uncertainties
include, but are not limited to, those resulting from adverse
developments in Puerto Rico or at PREPA, an inability or failure of
creditors to negotiate and implement a consensual restructuring,
litigation that has already been initiated or may be initiated in the
future, governmental or legislative actions by Puerto Rico or the United
States, other risks and uncertainties that have not been identified at
this time, management’s response to these factors, and other risk
factors identified in Assured Guaranty’s filings with the Securities and
Exchange Commission. Readers are cautioned not to place undue reliance
on these forward-looking statements, which are made as of July 1, 2015.
Assured Guaranty undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Assured Guaranty Ltd. is a publicly traded (NYSE: AGO) Bermuda-based
holding company. Its operating subsidiaries provide credit enhancement
products to the U.S. and international public finance, infrastructure
and structured finance markets. More information on Assured Guaranty
Ltd. and its subsidiaries can be found at AssuredGuaranty.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150701006321/en/
Contacts:
Assured Guaranty Ltd.
Robert Tucker, 212-339-0861
Managing
Director, Investor Relations and Corporate Communications
rtucker@assuredguaranty.com
or
Media:
Ashweeta
Durani, 212-408-6042
Vice President, Corporate Communications
adurani@assuredguaranty.com
Source: Assured Guaranty Ltd.
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