Ambac begins cash tender offer for insured Las Vegas Monorail bonds

By Susanna Moon

Chicago, March 6 – Ambac Financial Group, Inc. said that Ambac Assurance Corp. began a cash tender offer for the Las Vegas Monorail project revenue bonds, first tier series 2000, not owned by Ambac Assurance.

The revenue bonds were issued by the Nevada Department of Business and Industry for the benefit of the Las Vegas Monorail Co., according to a press release by Ambac.

The bonds consisting of $28,492,000 principal amount of current interest bonds and $32.9 million accreted value at their respective final maturity dates of its capital appreciation bonds, according to a separate press release.

The cash amount per $1,000 accreted value at final maturity of capital appreciation bonds along with deferred amounts including accreted interest as of Feb. 28 are as follows:

• $464.10 for the $3,795,000 capital appreciation bonds due Jan. 1, 2011 with $2,283,716 deferred amounts;

• $464.10 for the $3.56 million capital appreciation bonds due Jan. 1, 2012 with $2,142,301 deferred amounts;

• $460.10 for the $5.01 million capital appreciation bonds due Jan. 1, 2014 with $2,913,698 deferred amounts;

• $798.34 for the $3,195,000 capital appreciation bonds due Jan. 1, 2016;

• $673.32 for the $3.25 million capital appreciation bonds due Jan. 1, 2018;

• $614.90 for the $5,665,000 capital appreciation bonds due Jan. 1, 2019;

• $556.98 for the $225,000 capital appreciation bonds due Jan. 1, 2020;

• $464.25 for the $155,000 capital appreciation bonds due Jan. 1, 2022;

• $313.11 for the $3.91 million capital appreciation bonds due Jan. 1, 2026;

• $284.94 for the $1.56 million capital appreciation bonds due Jan. 1, 2027;

• $260.19 for the $560,000 capital appreciation bonds due Jan. 1, 2028; and

• $240.00 for the $2,015,000 capital appreciation bonds due Jan. 1, 2029.

The cash amount per $1,000 principal amount of current interest bonds along with deferred amounts including accreted interest as of Feb. 28 are as follows:

• $751.10 for the $9,515,000 current interest bonds due Jan. 1, 2032 with $1,604,272 deferred amounts;

• $751.10 for the $947,000 current interest bonds due Jan. 1, 2034 with $160,551 deferred amounts; and

• $711.10 for the $18.03 million current interest bonds due Jan. 1, 2040 with $3,222,661 deferred amounts.

The tender offer will end at 5 p.m. ET on April 7.

The bonds were insured by Ambac Assurance and the liabilities under those Ambac Assurance policies have been allocated to the segregated account of Ambac Assurance Corp., the release noted. The segregated account was placed into rehabilitation by the commissioner of insurance for the state of Wisconsin in March 2010.

MacKenzie Partners, Inc. (800 322-2885 or 212 929-5500 collect or tenderoffer@mackenziepartners.com) is the information agent and Wilmington Trust, NA is the depositary.

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