Bermuda | 001-32141 | 98-0429991 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
Item 8.01 | Other Events | ||
On July 1, 2015, Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty) announced that its bond insurance subsidiaries, Assured Guaranty Municipal Corp. and Assured Guaranty Corp., and other bond insurers will purchase $128 million of interest bearing bonds from the Puerto Rico Electric Power Authority (PREPA). The bond proceeds will replenish a portion of PREPA operating funds used to make the full $416 million payment of principal and interest due to its bondholders on July 1, 2015. The participating bond insurers will fund the bond purchase on a pro rata basis, based on the par amount of the PREPA revenue bonds coming due on July 1, 2015 that each has insured, which is approximately $113 million for Assured Guaranty. Assured Guaranty’s pro rata cost to purchase the new bonds before the impact of Assured Guaranty’s approximately 35% reinsurance will be $72.6 million. | |||
A copy of Assured Guaranty’s press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. | |||
Any forward-looking statements made in this Form 8-K reflect Assured Guaranty’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 adverse developments in Puerto Rico or at PREPA, an inability or failure of creditors to negotiate and implement a consensual restructuring, litigation that has already been initiated or may be initiated in the future, governmental or legislative actions by Puerto Rico or the United States, 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 July 1, 2015. 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. | |||
Item 9.01 | Financial Statements and Exhibits. | |||
(d) Exhibits | ||||
Exhibit Number | Description | |||
Exhibit Number | Description |
99.1 | Assured Guaranty Ltd. Press Release dated July 1, 2015 |