UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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| Item 8.01 | Other Events. |
On January 12, 2022, National sold certain bankruptcy claims in a private transaction through the transfer of ownership of $231 million face amount of bonds, representing approximately 22% of the principal amount of the current bond claims in the PREPA Title III case. The bonds included in this transaction had been fully satisfied by National’s insurance claim payments. This transaction monetizes a portion of National’s salvage asset at a discount to National’s previous carrying value, and reduces potential volatility and ongoing risk of remediation around the PREPA credit. National completed a similar transaction in October of 2021 through the transfer of ownership of $199 million face amount of bonds. Subsequent to the sale of these PREPA bankruptcy claims National does not have a material amount of additional par claims to PREPA that have matured and can be sold.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MBIAINC.
| By: | /s/ Jonathan C. Harris | |
| Jonathan C. Harris | ||
| General Counsel |
Date: January 12, 2022