ARMONK, N.Y.--(BUSINESS WIRE)--In response to investor inquiries, National Public Finance Guarantee Corporation (National), an indirect subsidiary of MBIA Inc. (NYSE: MBI), today confirmed that it has approximately $224 million of insured exposure to the City of Stockton, California, $89 million of which is backed by the City’s general fund.
“Bonds issued by the City of Stockton, California and insured by National are fully backed by National’s financial strength and claims-paying resources. In the event that the City should fail to make a required debt service payment for any reason bondholders who own National-insured bonds will receive their scheduled interest and principal payments on time and in full,” said National’s Chief Risk Officer Adam Bergonzi. “We will continue to monitor developments closely as the City attempts to resolve its fiscal crisis.”
The following is a summary of National’s insured exposure to various bonds issued by the City of Stockton:
| Issues | Exposure (Gross) | ||
|
Redevelopment Agency of the City of Stockton Revenue Bonds, Series 2004 (Stockton Events Center – Arena Project) |
$45,590,000 | ||
|
Stockton Public Financing Authority Lease Revenue Bonds Series 2004 (Parking and Capital Projects) |
$31,640,000 | ||
|
Stockton Public Financing Authority 2006 Lease Revenue Refunding Bonds, Series A (Municipal Building) |
$12,085,000 | ||
|
City of Stockton Revenue Certificates of Participation 1998 Series A (Wastewater System Project) |
$78,105,000 | ||
|
City of Stockton Revenue Certificates of Participation (Wastewater System Project) Parity Obligations Surety Bond |
$4,626,405 | ||
|
Stockton Public Financing Authority 2005 Water Revenue Bonds, Series A (Water System Capital Improvement Project) |
$24,230,000 | ||
|
City of Stockton Community Facilities District No. 1 (Weston Ranch) Special Tax Refunding Bonds, Series 2006 |
$15,490,000 | ||
|
City of Stockton Community Facilities District No. 90-2 (Brookside Estates) 2005 Special Tax Refunding Bonds |
$12,490,000 | ||
The two Stockton Public Financing Authority Lease issues rely directly on the general fund for debt service, while the RDA Events Center Lease issue has its own dedicated revenue stream in addition to a backstop from the general fund. All other exposures benefit from discrete dedicated revenue streams outside of the general fund.
Copies of the relevant policyholder documentation as well as a comprehensive listing of National’s insured portfolio can be found on National’s website at www.nationalpfg.com.
National, headquartered in Armonk, New York, is the world’s largest U.S. public finance-only financial guarantee insurance company, with offices in New York and San Francisco. The company’s financial strength is highlighted by its $5.7 billion in claims-paying resources, $2.8 billion in statutory capital and strong embedded profitability from its $410 billion insured portfolio and $5.3 billion investment portfolio as of December 31, 2011.
Forward-Looking Statements
This release includes statements that are not historical or current facts and are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “believe,” “anticipate,” “project,” “plan,” “expect,” “intend,” “will likely result,” “looking forward” or “will continue,” and similar expressions identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. These risks and uncertainties could affect financial performance or could cause actual results to differ materially from estimates contained in or underlying the MBIA Inc.’s or National’s forward-looking statements are discussed under the “Risk Factors” section in MBIA Inc.’s most recent Annual Report on Form 10-K, which may be updated or amended in MBIA Inc.’s subsequent filings with the Securities and Exchange Commission. MBIA Inc. and National caution readers not to place undue reliance on any such forward-looking statements, which speak only to their respective dates. National and MBIA Inc. undertake no obligation to publicly correct or update any forward-looking statement if it later becomes aware that such result is not likely to be achieved.