Assured Guaranty to Redeem Certain Outstanding Debt

August 31, 2021

On September 27, 2021, Assured Guaranty Municipal Holdings Inc. (AGMH) and Assured Guaranty US Holdings Inc. (AGUS) will redeem $400,000,000 aggregate principal amount of outstanding debt securities with coupons ranging from 6.25% to 5.0%, as summarized below. The redemption price will be funded with the proceeds of the recent issuance by AGUS of $400,000,000 aggregate principal amount of 3.600% Senior Notes due 2051 and available cash. The interest cost savings to be realized by replacing the redeemed debt with 3.6% debt will range from 265 basis points to 140 basis points per annum.
 
Full Redemptions:
Assured Guaranty Municipal Holdings Inc.
5.60% Notes due July 15, 2103 
6.25% Notes due November 1, 2102
 
The notes issued by Assured Guaranty Municipal Holdings Inc. listed below (the AGMH Notes) will be redeemed in full on September 27, 2021 (the Redemption Date) at the price listed below of the principal amount (the Redemption Price) together with interest accrued and unpaid up to, but excluding, the Redemption Date.

As a result of these redemptions of the AGMH Notes, in the third quarter of 2021, Assured Guaranty will recognize an expense of approximately $90 million on a pre-tax basis ($70 million after-tax), which represents the difference between the amount paid to redeem the AGMH Notes and the carrying value of such notes. The carrying value of the AGMH Notes includes the unamortized fair value adjustments that were recorded upon the acquisition of AGMH in 2009. (As previously disclosed, Assured Guaranty will also recognize an expense of approximately $66 million on a pre-tax basis ($52 million after-tax) in relation to an earlier redemption of AGMH debt securities on July 9, 2021.)
 
Partial Redemption:
Assured Guaranty US Holdings Inc.
5.000% Senior Notes due July 1, 2024 

The notes issued by Assured Guaranty US Holdings Inc. listed below (the AGUS Notes) will be redeemed, based on a lottery, on the Redemption Date at a redemption price equal to the greater of 1) 100% of the principal amount of the AGUS Notes to be redeemed or 2) the sum of the present values of the remaining scheduled payments of principal of and interest on the AGUS Notes to be redeemed, from the Redemption Date to the maturity date, discounted to the Redemption Date on a semi-annual basis at a discount rate equal to the applicable treasury rate plus 40 basis points. In addition, the redemption will include accrued and unpaid interest up to, but excluding, the Redemption Date. After giving effect to the partial redemption, $330,000,000 principal amount of the AGUS Notes due 2024 will remain outstanding.

 
Additional detail about these redemptions may be found in Assured Guaranty's Current Report on Form 8-K dated August 20, 2021.  This Company Statement does not constitute a notice of redemption for the debt securities to be redeemed, which will be made in accordance with the applicable indenture for such debt securities.