Assured Guaranty Provides €90 Million Financial Guarantee that Supports Eurotunnel Liquidity

A Significant Transaction for Assured Guaranty in the UK and European Markets

Category:

Wednesday, June 7, 2017 1:00 am EDT

Dateline:

LONDON

Public Company Information:

NYSE:
AGO

LONDON--(BUSINESS WIRE)--Assured Guaranty (Europe) plc (AGE)* announced that, as part of the Eurotunnel debt refinancing, it has issued a financial guarantee that benefits the holders of bonds issued by Channel Link Enterprises Finance Plc (CLEF) by providing CLEF debt service payment liquidity. CLEF is the securitisation vehicle and primary bond issuer for the Eurotunnel group.

Dominic Nathan, Managing Director, AGE, commented:

"This is a significant transaction for AGE in the UK and European markets, in which we provided a financial guarantee that improves CLEF’s debt service payment liquidity. We offer cost-effective financial guarantees that benefit infrastructure and utility companies for the long term. We expect to replicate our success on this transaction with other companies that seek to improve long-term liquidity for debt service payments.

AGE’s financial guarantee will provide CLEF with approximately €90 million of liquidity for debt service payments, denominated in two currencies in the amounts of £23 million and €64 million. This will be in addition to approximately €300 million of liquidity notes already issued by CLEF.

AGE’s financial guarantee, which was issued to the borrower security trustee as beneficiary, guarantees financial obligations under a loan that will provide funds to CLEF if it is unable to satisfy its debt service payments. The financial guarantee is also very long term and is committed until 2050.

Nick Proud, Chief Executive, AGE, commented:

This transaction provides further evidence of AGE’s ability to add value in the market in innovative ways. We continue our efforts to serve our clients by developing new and cost-effective applications of our product, and the use of our financial guarantee to provide a long-term debt service payment liquidity benefit in this high-profile transaction demonstrates the value that AGE can bring to infrastructure and utility financings."

*Assured Guaranty (Europe) plc (AGE) (formerly Assured Guaranty (Europe) Ltd.) (company number 2510099) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. AGE provides its financial guarantee together with a co-guarantee from its affiliate Assured Guaranty Municipal Corp. (AGM).

Through its subsidiaries, Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty) is the leading provider of financial guarantees for principal and interest payments due on municipal, public infrastructure and structured financings. Its subsidiary AGM guarantees international infrastructure and U.S. municipal bonds - and was previously named Financial Security Assurance Inc. (FSA) before becoming an Assured Guaranty company in July 2009. AGE, a subsidiary of AGM, is Assured Guaranty’s European operating platform. AGL is a publicly traded (NYSE: AGO), Bermuda-based holding company. More information on AGL and its subsidiaries can be found at AssuredGuaranty.com.

Nothing contained herein shall constitute an invitation or recommendation to invest or otherwise deal in, or an offer to sell or the solicitation of an offer to buy or subscribe for, any security.

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 harbour 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 Assured Guaranty’s inability to execute its strategies; the demand for Assured Guaranty’s financial guarantees; further actions that the rating agencies may take with respect to Assured Guaranty’s financial strength ratings; adverse developments in Assured Guaranty’s guaranteed portfolio; and other risks and uncertainties that have not been identified at this time, management’s response to these factors, and other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of 6 June 2017. 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
Investor Relations:
Robert Tucker, +1 212-339-0861
Senior Managing Director, Investor Relations and Corporate Communications
rtucker@agltd.com
or
Media:
Ashweeta Durani, +1 212-408-6042
Vice President, Corporate Communications
adurani@agltd.com