HAMILTON, Bermuda--(BUSINESS WIRE)--On April 6, 2017, the Puerto Rico Electric Power Authority (PREPA) announced it had reached agreement in principle on terms to modify its Restructuring Support Agreement (RSA) and that the RSA has been extended to April 13, 2017 to allow time for documentation of the modifications.
Assured Guaranty Municipal Corp. and Assured Guaranty Corp., subsidiaries of Assured Guaranty Ltd. (NYSE:AGO)(together with its subsidiaries, Assured Guaranty), are parties to the RSA. Commenting on the modified agreement, Dominic Frederico, President and CEO of Assured Guaranty said:
“We are pleased that PREPA, the Puerto Rico government, Assured Guaranty and other creditors have agreed to terms on modifications to the PREPA RSA that allow for full implementation and are fair to the various parties. We are encouraged that the Puerto Rico government has agreed that the RSA construct for PREPA provides the best path for a consensual resolution of this authority’s financial restructuring. Assured Guaranty has always favored a constructive approach to resolve the problems of distressed issuers.
“We believe the Oversight Board should promptly facilitate Title VI execution under PROMESA of the modified RSA, which would further affirm that consensual agreements like this one are the most efficient – and likely the only – way to put the Puerto Rico economy back on the road to recovery.”
Similar to the previous version of the RSA, Assured Guaranty will:
- Provide surety to support the new securitization bonds
- Extend maturity on relending bonds purchased in 2016
- Commit to purchase $18 million of relending bonds in July 2017, and
- Provide $120 million of principal payment deferrals in 2018 through 2023.
For additional information on the terms of the RSA, see the Puerto Rico Fiscal Agency and Financial Advisory Authority’s April 6, 2017 EMMA filing at https://emma.msrb.org/ER1046043-ER819555-ER1220619.pdf.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this press release 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 any of its instrumentalities, an inability or failure of creditors and the Commonwealth to implement a consensual restructuring, litigation that has already been initiated or may be initiated in the future, governmental or legislative action or inaction by Puerto Rico or the United States (including any actions taken by the federal oversight board established by the Puerto Rico Oversight, Management and Economic Stability Act), 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 April 6, 2017. 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.
Assured Guaranty Ltd. is a publicly traded Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.