Skip to main content

Assured Guaranty Signs Plan Support Agreement for Puerto Rico Clawback Credits and Continues to Support GO and PBA Plan Support Agreement

Bond insurance subsidiaries of Assured Guaranty Ltd. (NYSE:AGO) (together with its subsidiaries, Assured Guaranty) have executed a plan support agreement (the HTA/CCDA PSA) that provides for a consensual settlement of their insured exposure to Puerto Rico revenue bonds issued by the Highways and Transportation Authority (HTA) and Convention Center District Authority (CCDA). The settlement outlined under the HTA/CCDA PSA was agreed in principle by Assured Guaranty Municipal Corp. (AGM), Assured Guaranty Corp. (AGC), the Financial Oversight and Management Board for Puerto Rico (FOMB) and other creditors on April 12, 2021. With the execution of the HTA/CCDA PSA, Assured Guaranty also affirms its support of the Puerto Rico General Obligation (GO) and Public Buildings Authority (PBA) Plan Support Agreement (the GO/PBA PSA).

“This is a milestone achievement on the path to Puerto Rico’s economic revitalization,” said Dominic Frederico, Assured Guaranty’s President and CEO. “We have long believed a consensual, comprehensive approach represented the best outcome for the parties involved. This agreement is an important step towards bringing the Title III process to a conclusion.

“Together, the HTA/CCDA PSA, the GO/PBA PSA, and the previously agreed restructuring support agreement (RSA) for the Puerto Rico Electric Power Authority (PREPA) represent a comprehensive solution covering the vast majority of Assured Guaranty’s Puerto Rico exposures, and almost all of our small remaining exposure is to credits that have not missed any principal or interest payments,” he added.

Investors in HTA, CCDA, GO, PBA, PREPA and other bonds insured by Assured Guaranty are protected by its unconditional guaranty of full and timely payment of principal and interest when due, in accordance with the terms of Assured Guaranty's insurance policies.

Assured Guaranty Ltd. is a publicly traded (NYSE: AGO), Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit protection products to the U.S. and international public finance (including infrastructure) and structured finance markets, and also provides asset management services. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.

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 the failure of a Title III plan of adjustment based on the terms of the HTA/CCDA PSA, GO/PBA PSA and PREPA RSA (together, Support Agreements) to be confirmed under the Puerto Rico Oversight, Management, and Economic Stability Act; adverse developments in the Commonwealth or with respect to any of the credits covered by the Support Agreements; future litigation; failure of the parties to the Support Agreements to successfully negotiate final documentation or to live up to their obligations under the Support Agreements or related final documentation; governmental or legislative action or inaction by Puerto Rico or the United States; and 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 May 6, 2021. 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.

Contacts

Robert Tucker

Senior Managing Director, Investor Relations and Corporate Communications

212-339-0861

rtucker@agltd.com

Ashweeta Durani

Vice President, Corporate Communications

212-408-6042

adurani@agltd.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.