Assured Guaranty Completes Business Combination of European Subsidiaries
November 12 2018 - 10:00PM
Business Wire
Assured Guaranty Ltd. (together with its subsidiaries, Assured
Guaranty), the leading provider of financial guarantees, announced
the successful combination of the portfolios and operations of its
four international financial guarantee insurance companies. Assured
Guaranty (London) plc (AGLN), Assured Guaranty (UK) plc (AGUK) and
CIFG Europe SA (CIFG EU), which were previously acquired by Assured
Guaranty Europe plc (AGE), have been merged with and into AGE, with
AGE as the surviving entity. As a result, all obligations and bonds
insured by AGLN, AGUK and CIFG EU are now insured obligations of
AGE and are expected to receive AGE’s financial strength
ratings. AGE will continue as an active underwriter of financial
guarantees.
“We are pleased to have completed this business combination.
Policyholders of the combined company benefit from the security and
enhanced liquidity provided by AGE, whose financial strength is
rated AA by Standard and Poor’s,” said Nick Proud, CEO of AGE. “In
particular, this combination is significant for holders of bonds
formerly guaranteed by AGLN, as they are expected to benefit from a
significant ratings upgrade.”
Before being acquired by AGE, AGLN was the European operating
subsidiary of MBIA Insurance Corporation. The 30 issuers whose
insured bonds are expected to be affected by the AGLN upgrade have
an aggregate net par insured amount of $12.5 billion (£9.6
billion). For a list of AGLN, AGUK and CIFG EU transactions that
have become direct obligations of AGE due to the combination, visit
the Assured Guaranty website at
assuredguaranty.com/investor-information/by-company/european-subsidiaries.
Dominic Frederico, CEO of Assured Guaranty, said, “This
combination of companies gives us a simplified, more easily
understandable profile in the international market, while also
reducing the operational cost associated with maintaining multiple
companies. Additionally, the combined company’s increased economic
size and investor reach will enhance its visibility in the
international markets.”
AGE guarantees timely payment of scheduled principal and
interest to bondholders, throughout the life of the bonds, in
accordance with the terms of its financial guarantee.
Hogan Lovells International LLP acted as legal advisor to
Assured Guaranty.
Cautionary Statement Regarding Forward-Looking Statements:
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,
difficulties executing Assured Guaranty’s business strategy; risks
and uncertainties resulting from changes in rating agency models or
opinions; adverse credit developments in Assured Guaranty’s insured
portfolio and the impact of those developments on rating agency
models and opinions; 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 November 13, 2018. 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 (Europe) plc (AGE) (formerly Assured Guaranty
(Europe) Ltd.) (company number 2510099) is authorised by the
Prudential Regulation Authority and regulated by the Financial
Conduct Authority and the Prudential Regulation Authority. AGE
provides its financial guarantee together with a co-guarantee from
its affiliate Assured Guaranty Municipal Corp. (AGM).
Through its subsidiaries, Assured Guaranty Ltd. (AGL and,
together with its subsidiaries, Assured Guaranty) is the leading
provider of financial guarantees for principal and interest
payments due on municipal, public infrastructure and structured
financings. Its subsidiary AGM guarantees international
infrastructure and U.S. municipal bonds - and was previously named
Financial Security Assurance Inc. (FSA) before becoming an Assured
Guaranty company in July 2009. AGE, a subsidiary of AGM, is Assured
Guaranty’s European operating platform. AGL 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20181112005662/en/
Assured Guaranty Ltd.Investor Relations:Robert Tucker, +1
212-339-0861Senior Managing Director, Investor Relations and
Corporate Communicationsrtucker@agltd.comorMedia:Ashweeta Durani,
+1 212-408-6042Vice President, Corporate
Communicationsadurani@agltd.com
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