Assured Guaranty Municipal receives approval for stock redemption plan
Assured Guaranty Municipal (AGM), an indirect subsidiary of Assured Guaranty (AGL), today announced that the New York State Department of Financial Services has approved its request to implement a stock redemption plan.
The New York State Department of Financial Services has approved Assured Guaranty Municipal’s (AGM), an indirect subsidiary of Bermuda-based Assured Guaranty (AGL), request to implement a stock redemption plan.
Under the plan, AGM will repurchase shares from its direct parent, Assured Guaranty Municipal Holdings, for approximately $300 million.
AGL will use these funds predominantly to repurchase its publicly traded common shares.
Share repurchases can be made from time to time in the open market or in privately negotiated transactions. As of close of business on November 25, 2016, AGL had approximately $325 million remaining under its current share repurchase authorisations.
At September 30, 2016, AGM’s claims-paying resources totalled $5.7 billion (excluding its investment in its affiliate Municipal Assurance) and its leverage ratios of outstanding par and outstanding debt service to claims-paying resources were 20.8 to 1 and 32.0 to 1, respectively.