Assured Guaranty Announces Certain Determinations for Assured Insured Puerto Rico Convention Center District Authority (CCDA) and Puerto Rico Infrastructure Financing Authority (PRIFA) Bonds Under PROMESA Title VI

October 11, 2021

Pursuant to PROMESA Title VI, the Qualifying Modifications documents for CCDA and PRIFA (as amended, the Qualifying Modifications) provide that all Assured Guaranty Corp. (Assured Guaranty) insured CCDA and PRIFA bonds (together, Assured Insured CCDA/PRIFA Bonds) will be accelerated and immediately due and payable as of the Effective Date of the respective Qualifying Modifications. In accordance with the Qualifying Modifications, Assured Guaranty has exercised the Assured Election described below. Capitalized terms used without definition in this statement have the meanings assigned to such terms in the Qualifying Modifications.

Pursuant to the Qualifying Modifications, if approved by the Court: 

• all Assured Insured CCDA/PRIFA Bonds will be accelerated and immediately due and payable as of the Effective Date of the respective Qualifying Modifications and 
• consistent with the Assured Election, and Assured Guaranty’s rights under the applicable insurance policies to elect, in its sole discretion, to make payment on any date when such payment is due by reason of acceleration or other advancement of maturity, holders of the Assured Insured CCDA/PRIFA Bonds identified on Schedule A  will receive within ten (10) Business Days of the Effective Date of the respective Qualifying Modifications an acceleration price of one hundred percent (100%) of the principal amount thereof plus accrued interest thereon (or, in the case of any capital appreciation bonds, the compounded amount thereof) to the date of payment (the Acceleration Price).

From and after payment of the Acceleration Price, interest on such Assured Insured CCDA/PRIFA Bonds shall cease to accrue and be payable. 

Payment of the applicable Acceleration Price with respect to any Assured Insured CCDA/PRIFA Bonds shall satisfy and discharge all of Assured Guaranty’s obligations under the Assured Guaranty insurance policies with respect to such Assured Insured CCDA/PRIFA Bonds. 

In connection with distribution of the solicitation statements for, and the solicitation of votes on, the respective Qualifying Modifications, holders of Assured Insured CCDA/PRIFA Bonds will receive a notice informing them that the Assured Insured CCDA/PRIFA Bonds owned by them will be subject to the Assured Election and the resulting treatment of their bond claims under the Qualifying Modifications and Assured Guaranty insurance policies, as described above.

The information set out above contains forward-looking statements that 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 the failure of the Qualifying Modifications to be confirmed by the Court as anticipated by Assured Guaranty or a successful legal challenge to relevant portions of the Qualifying Modifications, Assured Guaranty's inability to execute its strategies, including its loss mitigation and risk remediation strategies, and negative developments that may impact Assured Guaranty's liquidity and capital, and therefore its ability to make claim payments on time and in full, including less demand for Assured Guaranty's financial guaranty product, or adverse developments with respect to its insured or investment portfolio, and 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 October 11, 2021. 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.