Assured Guaranty Joins PREPA Restructuring Support Agreement

HAMILTON, Bermuda–(BUSINESS WIRE)–Bond insurance subsidiaries of Assured Guaranty Ltd. (NYSE:AGO)
(together with its subsidiaries, Assured Guaranty) have entered into a
restructuring support agreement (RSA) with the Puerto Rico Electric
Power Authority (PREPA) and other stakeholders, including a group of
uninsured PREPA bondholders, the Commonwealth of Puerto Rico, and the
Financial Oversight and Management Board for Puerto Rico (FOMB). Assured
Guaranty signed on to the agreement after negotiating amendments to a
preliminary agreement announced in July 2018 by a number of the other

The restructuring transaction described in the RSA is intended to, among
other things, provide a framework for the consensual resolution of the
treatment of Assured Guaranty’s insured PREPA revenue bonds in PREPA’s
recovery plan. Upon consummation of the restructuring transaction,
PREPA’s revenue bonds will be exchanged into new securitization bonds
issued by a special purpose corporation and secured by a segregated
transition charge assessed on electricity bills.

The closing of the restructuring transaction is subject to a number of
conditions, including approval by the Title III Court of the RSA and
settlement described therein, a minimum of 67% support of voting
bondholders for a plan of adjustment that includes this proposed
treatment of PREPA revenue bonds and confirmation of such plan by the
Title III court, and execution of acceptable documentation and legal
opinions. Under the RSA, Assured Guaranty has the option to guarantee
its allocated share of the securitization exchange bonds, which may then
be offered and sold in the capital markets. Assured Guaranty believes
that the additive value created by attaching its guarantee to the
securitization exchange bonds would materially improve its overall
recovery under the transaction, as well as generate new insurance
premiums; and therefore its economic results will differ from those
reflected in the RSA.

“We have long made the case that the solution to Puerto Rico’s
difficulties is through consensual settlements,” said Dominic Frederico,
President and CEO of Assured Guaranty. “This settlement builds on the
work that successfully produced an earlier version of an RSA for PREPA,
before the enactment of PROMESA in 2016. Today, we are pleased to have
reached a settlement with the Oversight Board, the Commonwealth, and
other bondholders with regard to PREPA, and we believe the restructuring
transaction outlined in this new RSA can be the foundation for an
effective, consensual plan that assures reliable, affordable electric
power for the people of Puerto Rico. We are committed to continue
working cooperatively with PREPA and other stakeholders to implement
such a plan.”

Investors in PREPA bonds insured by Assured Guaranty are protected by
its unconditional guaranty of full and timely payment of principal and
interest in accordance with the terms of Assured Guaranty’s insurance

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this press release reflect
Assured Guaranty’s current views with respect to future events and are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve risks and
uncertainties that may cause actual results to differ materially from
those set forth in these statements. These risks and uncertainties
include, but are not limited to, those resulting from adverse
developments in Puerto Rico or at PREPA, an inability or failure of
creditors to negotiate and implement a consensual restructuring,
litigation that has already been initiated or may be initiated in the
future, governmental or legislative action or inaction by Puerto Rico or
the United States, other risks and uncertainties that have not been
identified at this time, management’s response to these factors, and
other risk factors identified in Assured Guaranty’s filings with the
Securities and Exchange Commission. Readers are cautioned not to place
undue reliance on these forward-looking statements, which are made as of
May 3, 2019. Assured Guaranty undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by law.

Assured Guaranty Ltd. is a publicly traded Bermuda-based holding
company. Its operating subsidiaries provide credit enhancement products
to the U.S. and international public finance, infrastructure and
structured finance markets. More information on Assured Guaranty Ltd.
and its subsidiaries can be found at


Assured Guaranty Ltd.
Robert Tucker, 212-339-0861
Director, Investor Relations and Corporate Communications

Ashweeta Durani, 212-408-6042
Vice President, Corporate

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