|[October 31, 2013]
Assured Guaranty and Other Stakeholders Agree on Additional Terms with Jefferson County to Facilitate Bankruptcy Exit
HAMILTON, Bermuda --(Business Wire)--
Assured Guaranty (NYSE: AGO) has been working with Jefferson County,
Alabama, and other stakeholders over the last few years to find a
solution to resolve the County's sewer indebtedness issues and allow it
to exit bankruptcy. In a further step in this process, the County's plan
support parties, including Assured Guaranty Municipal Corp. (Assured
Guaranty Municipal), have agreed to additional measures to permit the
County to emerge from bankruptcy.
"Assured Guaranty has been an integral part of the solution by helping
to facilitate a viable bankruptcy exit plan that accomplishes the
objectives of Jefferson County and are supported by the stakeholders,"
said Dominic Frederico, President and CEO of Assured Guaranty Ltd.
Under the terms of today's agreement, Assured Guaranty Municipal would
insure $500 million of proposed Jefferson County, Alabama, Senior Lien
Sewer Revenue Warrants. The senior lien warrants would be secured by a
gross lien on system revenues, and the lien would be closed to prevent
any future dilution of the senior lien warrants' claim on revenues.
Further, the restructuring would result in a significant deleveraging of
the sewer system. If today's agreement and the conditional settlement
agreement announced on June 4, 2013 are implemented, Assured Guaranty's
losses would continue to be within its June 30, 2013 Jefferson County
Assured Guaranty Municipal's participation in the County's bankruptcy
exit plan underscores its unique bility to assist issuers in accessing
the capital markets to help them achieve their capital market needs.
Throughout the County's fiscal difficulties, Assured Guaranty Municipal
has protected the interests of its insured Jefferson County warrant
holders and, when there was a debt service shortfall, made full and
timely payment of debt service under its unconditional and irrevocable
financial guaranty insurance policies - even when the sewer warrant
trustee ceased submitting claims for payment under Assured Guaranty
Municipal's policies. Assured Guaranty Municipal is a member of the
Assured Guaranty group, which has $12 billion in consolidated
Assured Guaranty Ltd. is a Bermuda-based holding company that provides,
through its operating subsidiaries, insurance products to the U.S. and
international public finance, infrastructure and structured finance
More information can be found at: AssuredGuaranty.com.
Cautionary Statement Regarding Forward-Looking
Any forward-looking statements made in this press release reflect the
current views of Assured Guaranty Ltd. and its subsidiaries (Assured
Guaranty) 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 Jefferson County's
Chapter 9 plan of adjustment not receiving the approval of the U.S.
Bankruptcy Court for the Northern District of Alabama or not being able
to be implemented. In addition, Assured Guaranty's ability to assist
issuers in accessing capital markets may be negatively affected by a
lack of demand for bond insurance, the rise of other competitors in the
market, Assured Guaranty not being able to maintain its financial
strength ratings, or adverse developments in Assured Guaranty's insured
portfolio that have a negative impact on its financial condition; 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 October 31,
2013. 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.
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