Assured Guaranty Remarketing 8.5% Senior Notes
Bermuda-based holding company Assured Guaranty Ltd. [AGL], along with its wholly owned subsidiary, Assured Guaranty US Holdings Inc. [AGUS], expect to remarket on May 24, 2012 AGUS’s 8.50% Senior Notes due 2014.
The Notes were originally issued as part of AGL’s Corporate Units. AGL and AGUS intend to remarket the Notes exclusively to AGL or one of its affiliates. All Notes acquired by AGL or its affiliate will be retired on or about June 1, 2012. AGL expects to finance the retirement of the Notes using available cash.
A statement issued by the Company said, Holders of the outstanding Notes that are components of the Corporate Units and holders of Notes held separately from the Corporate Units who elect to participate in a successful remarketing will receive the remaining proceeds, if any, from the remarketing, after deduction of the remarketing fee and, in the case of the holders of Corporate Units, after satisfaction of the holders’ obligations under the related purchase contracts to purchase AGL’s common shares on June 1, 2012.
“The reset rate and interest payment dates for the Notes will be established, and modified terms of the Notes will be set, on the remarketing date and will be effective on June 1, 2012. The reset rate will be determined by the remarketing agent based solely on the bid submitted by AGL or its affiliate that results in a price for the Notes equal to at least 100% of the aggregate principal amount of the Notes being remarketed plus the applicable remarketing fee. The remarketing fee is expected to be $431,250.”
