Business Context and Reporting Period
Company: Assured Guaranty Ltd.
Filing Type: Form 8-K (Current Report)
Date of Report: August 26, 2009
Event: Entry into Material Definitive Agreements (Supplemental Indentures)
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or liquidity metrics. It details specific debt instruments being guaranteed:
- 6 7/8% Quarterly Interest Bond Securities due 2101: $100,000,000 aggregate principal amount.
- 6.25% Notes due November 1, 2102: $230,000,000 aggregate principal amount.
- 5.60% Notes due July 15, 2103: $100,000,000 aggregate principal amount.
- Junior Subordinated Debentures, Series 2006-1: $300,000,000 aggregate principal amount.
Material Changes
On August 26, 2009, Assured Guaranty Ltd. ("Assured") and its indirectly wholly owned subsidiary, Financial Security Assurance Holdings Ltd. ("FSAH"), entered into two supplemental indentures:
- Assured agreed to unconditionally guarantee the $430 million in senior notes and bond securities issued by FSAH (governed by the indenture with U.S. Bank National Association).
- Assured agreed to unconditionally guarantee on a junior subordinated basis the $300 million in Junior Subordinated Debentures issued by FSAH (governed by the indenture with The Bank of New York Mellon).
Guidance, Outlook, and Risks
The filing contains no management commentary, financial guidance, or outlook. The primary risk disclosed is the assumption of unconditional guarantee obligations for the specified debt securities, subject to the terms and conditions set forth in the attached supplemental indentures.
Investor Verification Checklist
- Verify the full text of the Supplemental Indentures (Exhibits 99.1 and 99.2) to understand specific covenants and conditions attached to the guarantees.
- Confirm the credit rating implications of Assured assuming these guarantees for FSAH's debt.
- Review the capital structure impact of the $730 million total principal amount now guaranteed by the parent company.