Bermuda | 001-32141 | 98-0429991 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
Item 8.01 | Other Events | |||
On December 24, 2015, Assured Guaranty Ltd. announced that its bond insurance subsidiaries Assured Guaranty Municipal Corp. (AGM) and Assured Guaranty Corp. (AGC) entered into a restructuring support agreement (RSA) with the Puerto Rico Electric Power Authority (PREPA) and other stakeholders. The restructuring transaction described in the RSA is intended to, among other things, provide a framework for the consensual resolution of the treatment of insured PREPA revenue bonds in PREPA's recovery plan and to provide bridge financing for PREPA’s January 1, 2016 interest payment. AGM's and AGC's proportionate share of the PREPA bridge financing is approximately $15 million in the aggregate. Upon finalization of the restructuring transaction, insured PREPA revenue bonds (with no reduction to par or stated interest rate or extension of maturity) will be supported by securitization bonds issued by a special purpose corporation and secured by a transition charge assessed on ratepayers. To facilitate the securitization transaction, which enables PREPA to achieve debt relief and more efficient capital markets financing, AGM and AGC will issue surety insurance policies in an amount not expected to exceed $113 million in the aggregate in exchange for a market premium to support a portion of the reserve fund for the securitization bonds. The closing of the restructuring transaction is subject to certain conditions, including enactment of related legislation by the Puerto Rico legislature and execution of acceptable documentation and legal opinions. | ||||
A copy of the press release is attached as Exhibit 99.1 hereto. | ||||
Any forward-looking statements made in this Form 8-K 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 action or inaction 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 December 24, 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. | ||||
Item 9.01 | Financial Statements and Exhibits. | |||
(d) | Exhibits | |||
Exhibit Number | Description | |||
99.1 | Press Release of Assured Guaranty Ltd., dated December 24, 2015 | |||
ASSURED GUARANTY LTD. | |
By: | /s/ James M. Michener |
Name: James M. Michener | |
Title: General Counsel | |
Exhibit Number | Description | |
99.1 | Press Release of Assured Guaranty Ltd., dated December 24, 2015 | |