Assured Guaranty Municipal Corp. (AGM), an indirect subsidiary of
Assured Guaranty Ltd. (AGL)(NYSE:AGO), today announced that the New York
State Department of Financial Services has approved its request to
implement a stock redemption plan.
Under the plan, AGM will repurchase shares from its direct parent,
Assured Guaranty Municipal Holdings Inc., for approximately $300 million.
AGL will use these funds predominantly to repurchase its publicly traded
common shares. Share repurchases can be made from time to time in the
open market or in privately negotiated transactions. As of close of
business on November 25, 2016, AGL had approximately $325 million
remaining under its current share repurchase authorizations.
At September 30, 2016, AGM’s claims-paying resources totaled $5.7
billion (excluding its investment in its affiliate Municipal Assurance
Corp.) and its leverage ratios of outstanding par and outstanding debt
service to claims-paying resources were 20.8 to 1 and 32.0 to 1,
respectively.
Cautionary Statement Regarding Forward-Looking Statements:
Any forward-looking statements made in this press release reflect AGM’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, those resulting from Assured Guaranty Ltd.’s or its subsidiaries’
need or desire to use funds obtained from AGM’s repurchase of its shares
for purposes other than repurchasing Assured Guaranty Ltd.’s publicly
traded common shares; 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 Ltd.’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 28, 2016. Assured Guaranty Ltd. and AGM undertake 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.
AGM is an operating subsidiary of Assured Guaranty Ltd., a publicly
traded Bermuda-based holding company whose operating subsidiaries
provide credit enhancement products to the U.S. and international public
finance, infrastructure and structured finance markets. More information
on Assured Guaranty and its subsidiaries can be found at AssuredGuaranty.com.
