Assured Guaranty Municipal Holdings, Inc. Is Redeeming Certain Outstanding Debt

Rhea-AI Summary

Assured Guaranty Ltd. (NYSE: AGO) announced a full redemption of its 6.875% Quarterly Interest Bond due December 15, 2101, and a partial redemption of its 6.25% Note due November 1, 2102, both effective July 9, 2021. The full redemption involves a principal amount of $100 million at 100% of the price, along with accrued interest. The partial redemption also consists of a $100 million principal amount at the same price. This move is part of Assured Guaranty's strategy to manage its debt and optimize its financial position.

Positive

• Full redemption of $100 million in bonds enhances liquidity.
• Strategic debt management reduces future interest obligations.

Negative

• None.

Assured Guaranty Ltd. (NYSE: AGO) announced that its subsidiary, Assured Guaranty Municipal Holdings, Inc. is redeeming certain outstanding debt:

Full Redemption:
Assured Guaranty Municipal Holdings Inc.
6.875% Quarterly Interest Bond Security due December 15, 2101

Pursuant to the terms of the governing document dated as of February 24, 1999, between Assured Guaranty Municipal Holdings Inc., as Issuer, and U.S. Bank National Association, as Trustee or Agent, the bonds listed below were selected for full redemption on July 9, 2021 (the Redemption Date) at the price listed below of the principal amount (the Redemption Price) together with interest accrued to the Redemption Date.

CUSIP		Maturity		Rate		Amount		Price
04623A205		12/15/2101		6.875%		$100,000,000		100.00%

Partial Redemption:
Assured Guaranty Municipal Holdings Inc.
6.25% Note due November 1, 2102

Pursuant to the terms of the governing document dated as of February 24, 1999, between Assured Guaranty Municipal Holdings Inc., as Issuer, and U.S. Bank National Association, as Trustee or Agent, a portion of the notes listed below is being redeemed, based on a lottery, on July 9, 2021 (the Redemption Date) at the price listed below of the principal amount (the Redemption Price) together with interest accrued to the Redemption Date.

CUSIP		Maturity		Rate		Amount		Price
04623A304		11/01/2102		6.25%		$100,000,000		100.00%

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210709005321/en/

FAQ

What bonds is Assured Guaranty redeeming on July 9, 2021?

Assured Guaranty is redeeming its 6.875% Quarterly Interest Bond due December 15, 2101 and partially redeeming its 6.25% Note due November 1, 2102.

How much is the full redemption amount for Assured Guaranty?

The full redemption amount for the 6.875% bond is $100 million.

What is the impact of the bond redemption on AGO's financial position?

The bond redemption enhances liquidity and reduces future interest obligations for AGO.