Statement on Conditional Jefferson County Settlement Agreement

June 10, 2013

The conditional Jefferson County settlement agreement announced on June 4, 2013 provides a framework for resolving the county’s sewer indebtedness.  As of March 31, 2013, Assured Guaranty’s direct and assumed net exposure to the sewer warrants was $464 million.  If the conditional agreement is implemented, Assured Guaranty’s losses are expected to be within already established reserves.

Under the agreement, warrant holders voting to retain Assured Guaranty Municipal’s insurance policy will receive an upfront payment of 65 cents per dollar of principal when the settlement takes effect and will receive future scheduled debt service payments, when due on the unpaid principal balance (subject to acceleration), from Assured Guaranty Municipal for the remaining 35 cents per dollar of principal in accordance with the terms of the insurance policy.  Future claims against Jefferson County will be released.

Warrant holders voting to receive Jefferson County's upfront payment of 80 cents per dollar of principal will release future claims against Jefferson County and Assured Guaranty's insurance policy once the settlement takes effect.

Press Release Update, October 31, 2013