Benzinga | May 6, 2021 06:55AM EDT

Assured Guaranty Signs Plan Support Agreement for Puerto Rico Clawback Credits and Continues to Support GO and PBA Plan Support Agreement

Bond insurance subsidiaries of Assured Guaranty Ltd. (NYSE:AGO) (together with its subsidiaries, Assured Guaranty) have executed a plan support agreement (the HTA/CCDA PSA) that provides for a consensual settlement of their insured exposure to Puerto Rico revenue bonds issued by the Highways and Transportation Authority (HTA) and Convention Center District Authority (CCDA). The settlement outlined under the HTA/CCDA PSA was agreed in principle by Assured Guaranty Municipal Corp. (AGM), Assured Guaranty Corp. (AGC), the Financial Oversight and Management Board for Puerto Rico (FOMB) and other creditors on April 12, 2021. With the execution of the HTA/CCDA PSA, Assured Guaranty also affirms its support of the Puerto Rico General Obligation (GO) and Public Buildings Authority (PBA) Plan Support Agreement (the GO/PBA PSA).

"This is a milestone achievement on the path to Puerto Rico's economic revitalization," said Dominic Frederico, Assured Guaranty's President and CEO. "We have long believed a consensual, comprehensive approach represented the best outcome for the parties involved. This agreement is an important step towards bringing the Title III process to a conclusion.

"Together, the HTA/CCDA PSA, the GO/PBA PSA, and the previously agreed restructuring support agreement (RSA) for the Puerto Rico Electric Power Authority (PREPA) represent a comprehensive solution covering the vast majority of Assured Guaranty's Puerto Rico exposures, and almost all of our small remaining exposure is to credits that have not missed any principal or interest payments," he added.