16 October 2019News

Syncora to distribute proceeds of sale of subsidiary to investors

Syncora Holdings will distribute 100 percent of the net sale proceeds from its sale of Syncora Guarantee (SGI), its wholly-owned, New York-based financial guarantee insurance subsidiary, to investors.

Syncora said it will distribute the net sales proceeds as soon as it can once the transaction is complete.

Syncora agreed to sell SGI to Star Insurance for $429 million in cash, subject to adjustment.  Costs associated with the sale, which include legal and advisory fees, compensation and severance costs, are expected to be up to $20 million.

Management and tax advisors are analysing the applicable tax considerations arising from the sale and distribution to Syncora equity holders of the related net sales proceeds and will disclose and will disclose the intended tax treatment once this analysis is complete.

The closing of the transaction remains subject to customary conditions, including approval by the New York State Department of Financial Services, and is expected to take place by Q1 2020.

Syncora will also host a conference call on November 15 to discuss its financial results for the nine months ended September 30, 2019.