Proceeds Will Be Used to Redeem Higher-Coupon Debt Securities
Assured Guaranty Ltd. (NYSE: AGO) announced that, on August 20, 2021, its subsidiary, Assured Guaranty US Holdings Inc. (AGUS), issued $400,000,000 aggregate principal amount of 3.600% Senior Notes due 2051. The notes are guaranteed by Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty). On September 27, 2021, AGL’s subsidiaries will redeem $400,000,000 aggregate principal amount of outstanding debt securities, as follows:
- Assured Guaranty Municipal Holdings Inc. (AGMH) will redeem all $100,000,000 outstanding principal amount of its 5.60% Notes due July 15, 2103 (CUSIP 04623A403) (NYSE Trading Symbol: AGO PRF) (the AGMH Notes due 2103).
- AGMH will redeem all remaining $130,000,000 of its 6.25% Notes due November 1, 2102 (CUSIP 04623A304) (NYSE Trading Symbol: AGO PRE) (the AGMH Notes due 2102 and, together with the AGMH Notes due 2103, the AGMH Securities).
- AGUS will redeem $170,000,000 of the outstanding principal amount of its 5.000% Senior Notes due July 1, 2024 (CUSIP 04621WAC4) (NYSE Trading Symbol: AGO 24) (the AGUS Notes due 2024 and, together with the AGMH Securities, the Securities). After giving effect to the partial redemption, $330,000,000 principal amount of the AGUS Notes due 2024 will remain outstanding.
The redemption price for the AGMH Securities to be redeemed will be 100% of the principal amount of the Securities. The redemption price for the AGUS Notes due 2024 to be redeemed will be the greater of 1) 100% of the principal amount of the AGUS Notes due 2024 to be redeemed or 2) the sum of the present values of the remaining scheduled payments of principal of and interest on the AGUS Notes due 2024 to be redeemed, from the redemption date to the maturity date, discounted to the date of redemption on a semi-annual basis at a discount rate equal to the applicable treasury rate plus 40 basis points. In addition, the redemption price for the Securities to be redeemed will include accrued and unpaid interest up to, but excluding, the redemption date of September 27, 2021. On and after the redemption date, interest will cease to accrue on the AGMH Securities and on the portion of the AGUS Notes due 2024 selected for redemption.
Payment of the redemption price for the Securities will be made through the facilities of The Depository Trust Company. U.S. Bank National Association is the trustee and paying agent for the AGMH Securities. The Bank of New York Mellon Trust Company, N.A. is the trustee and paying agent for the AGUS Notes due 2024. A notice of redemption will be issued to The Depository Trust Company. Beneficial holders with any questions about the redemption should contact their respective brokerage firm or financial institution that holds Securities on their behalf.
This press release shall not constitute a notice of redemption nor does it constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Assured Guaranty Ltd. is a publicly traded Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets, and also provides asset management services.