Assured Guaranty Insures $412 Million of Bonds in Landmark LaGuardia Airport Project Financing

Category:

Wednesday, June 8, 2016 9:45 am EDT

Dateline:

NEW YORK

Public Company Information:

NYSE:
AGO

NEW YORK--(BUSINESS WIRE)--Assured Guaranty Municipal Corp. (AGM) insured $412 million of the $2.41 billion of bonds issued by the New York Transportation Development Corporation on June 1, 2016 to finance the redevelopment of LaGuardia Airport’s Central Terminal B in New York City. AGM insured four maturities of Tax-Exempt (AMT) Special Facilities Bonds, which were rated AA (stable) and A2 (stable) by S&P Global Ratings and Moody’s Investors Service, respectively. The underlying project was rated Baa3 (stable) and BBB (stable) by Moody’s and Fitch Ratings, respectively.

The issuance supports LaGuardia Gateway Partners (LGP), a consortium of Vantage Airport Group, Skanska and Meridiam. LGP will design, build, finance, operate and maintain a new Terminal B, operate and demolish the existing Terminal B, as well as design and construct various new improvements and a new Central Hall.

The 2035 AGM insured bond priced at a yield of 3.01% on $60,490,000 of fixed rate bonds; the 2036 AGM insured bond priced at a yield of 3.06% on $66,310,000 of fixed rate bonds; the 2037 AGM insured bond priced at a yield of 3.11% on $72,450,000 of fixed rate bonds; and the 2051 AGM insured bond priced at a yield of 3.41% on $212,700,000 of fixed rate bonds. AGM guarantees timely payment of scheduled principal and interest to bondholders throughout the life of the bonds.

Lorne Potash, Managing Director, Project Finance, The Americas commented:

"We are pleased to have played a key role in this very successful and important transaction. This execution reinforces the value we provide to bond issuers and reflects strong investor demand for our product even in a period of historic low interest rates and tight spreads. AGM is uniquely positioned to execute on such large, complex transactions given our experience, financial strength, and underwriting capabilities. We view the infrastructure space as a great opportunity to add value to our clients and to grow our business.”

AGM is a subsidiary of Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty), the leading provider of financial guarantees for municipal, public infrastructure and structured financings. AGL’s shares are traded on the New York Stock Exchange under the ticker symbol AGO. More information is available at AssuredGuaranty.com.

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, including those 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 June 08, 2016. 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.

Contact:

Assured Guaranty Ltd.
Robert Tucker, 212-339-0861
Senior Managing Director, Investor Relations and Corporate Communications
rtucker@assuredguaranty.com
or
Media:
Ashweeta Durani, 212-408-6042
Vice President, Corporate Communications
adurani@assuredguaranty.com