By Devika Patel
Knoxville, Tenn., Feb. 29 - Assured Guaranty Ltd. said it could raise a total of $1 billion from a private placement of shares. In an agreement with WL Ross & Co. LLC, the company has agreed to sell $250 million in stock to WL Ross and has the option of selling another $750 million in shares.
The price per common share for the initial investment of $250 million will be the higher of 97% of the average of $22.43, which is the company's NYSE closing price on Feb. 22, and the average NYSE closing price for Feb. 29 and March 3 or $21.76 (97% of $22.43).
The additional $750 million commitment by WL Ross is available at Assured's option for one year from settlement of the $250 million investment. The price for subsequent investments will be 97% of the volume weighted average price of the company's common shares for the 15 trading days prior to notice of any subsequent investment.
Assured is a Hamilton, Bermuda, provider of credit enhancement for the public finance, structured finance and mortgage markets.
| Issuer: | Assured Guaranty Ltd.
|
| Issue: | Common shares
|
| Amount: | $1 billion
|
| Price: | The higher of 97% of the average of $22.43 and the average NYSE closing price for Feb. 29 and March 3 or $21.76
|
| Warrants: | No
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| Investor: | WL Ross & Co. LLC
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| Pricing date: | Feb. 29
|
| Stock symbol: | NYSE: AGO
|
| Stock price: | $22.78 at close Feb. 28
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