On March 15, Assured Guaranty Municipal Corp. and Assured Guaranty Corp., each a subsidiary of Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty), each settled its exposure to the Puerto Rico General Obligation (GO), Public Buildings Authority (PBA), Convention Center District Authority (PRCCDA) and Puerto Rico Infrastructure Financing Authority (PRIFA) bonds that it insured. As part of the settlements, Assured Guaranty received certain plan consideration distributed under the Commonwealth Plan of Adjustment (the Commonwealth Plan) and other agreements that were confirmed in January 2022 by the United States District Court of the District of Puerto Rico acting under the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA).

Assured Guaranty paid claims on its insurance obligations and received cash, new GO bonds and contingent value instruments (CVIs) in accordance with the terms of the settlement agreement applicable to each bond issue.

Dominic Frederico, President and CEO of Assured Guaranty, said, “These settlements are a huge step forward for Puerto Rico, and we hope they provide momentum towards final resolution of the island’s bankruptcy. They also bring Assured Guaranty closer to resolving its insurance exposure to Puerto Rico credits by removing $1.3 billion of net par from our insured portfolio, which represented 39% of our non-paying Puerto Rico insurance exposure at year-end 2021.

“Assured Guaranty will continue to work constructively to complete the settlement process for its other non-paying Puerto Rico credits, and we hope that the current settlements will bring forward renewed respect for consensual agreements and the rule of law, and with it, access to the capital markets for Puerto Rico.”

The Commonwealth Plan restructures approximately $35 billion of debt (including $1.2 billion outstanding par of GO and PBA bonds insured by Assured Guaranty), as well as other claims against the government of Puerto Rico and certain entities, and $50 billion in pension obligations. In general, it provides for reduced annual Commonwealth debt service payments and for the distribution of new GO bonds, cash, and CVIs to Assured Guaranty and other creditors. In this case, the CVI is intended to provide creditors with additional plan consideration tied to the outperformance of the Puerto Rico 5.5% Sales and Use Tax (SUT) receipts against the May 2020 certified fiscal plan projections, subject to annual and lifetime caps. To date, the SUT receipts have exceeded the May 2020 projections.

No action is required on the part of insured investors to receive their principal and accrued interest on the bonds on which Assured Guaranty is paying claims.

Assured Guaranty Ltd. is a publicly traded (NYSE: AGO), Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets and also provides asset management services. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.

Any forward-looking statements made in this 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 the failure of a Title III plan of adjustment to be confirmed under the Puerto Rico Oversight, Management, and Economic Stability Act on substantially the terms contemplated by the remaining plan support agreement to which Assured Guaranty is a party and covering other non-paying Puerto Rico exposures; the failure to reach a resolution of remaining non-paying Puerto Rico exposures not covered by an effective plan support agreement on terms substantially consistent with the terms anticipated by Assured Guaranty; future litigation, 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 March 16, 2022. 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.

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