Assured Guaranty extends consent time to shift bond guaranty from CIFG

By Susanna Moon

Chicago, July 14 - CIFG Assurance North America, Inc. and Assured Guaranty Corp. said they extended the consent solicitations to provide bondholders with Assured Guaranty's direct guaranty of their bonds through novation.

The offer to novate a particular policy will now be open through Sept. 15, extended from July 15, according to a press release.

Requests for consent to novate primary market policies in some states have not yet been sent because the required regulatory approvals are pending.

The companies said on April 20 that they would like to transfer the bond insurance policies insuring U.S. municipal and infrastructure bonds guaranteed by CIFG and reinsured by Assured Guaranty.

Once a policy has been novated, Assured Guaranty said it will request an Assured Guaranty insured rating from Standard & Poor's and Moody's Investors Service.

The solicitation implements the process contemplated by the January 2009 reinsurance under which Assured Guaranty provides reinsurance and administrative services for CIFG-insured bonds, according to a prior release.

The novation will be implemented in two parts, with consents solicited for the bonds insured in the primary market in the first phase and those in the secondary market in the second phase.

The companies said that holders of bonds insured by CIFG are not currently being asked to directly consent to the novation of the policy insuring their bonds.

Once CIFG receives the required certificate of consent for a given policy, Assured Guaranty will become the insurer of the bond in place of CIFG, CIFG will be released from its obligations under the policy and related documents, and Assured Guaranty will have all of the original rights and obligations of CIFG under the policy.

Bondholders, trustees and issuers with questions about the novation process may write to novationteam@cifg.com or leave a message at 212 909-0410.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.