MBIA Inc. Announces Consent Solicitation Relating to the Indentures Governing Its 6.40% Senior Notes Due 2022, 7.00% Debentures

  MBIA Inc. Announces Consent Solicitation Relating to the Indentures
  Governing Its 6.40% Senior Notes Due 2022, 7.00% Debentures Due 2025, 7.15%
  Debentures Due 2027, 6.625% Debentures Due 2028 and 5.70% Senior Notes Due
  2034

Business Wire

ARMONK, N.Y. -- November 07, 2012

MBIA Inc. (the “Company” or “MBIA”) (NYSE: MBI) announced today that it has
commenced a consent solicitation relating to the Indentures governing its
6.40% Senior Notes due 2022, 7.00% Debentures due 2025, 7.15% Debentures due
2027, 6.625% Debentures due 2028 and 5.70% Senior Notes due 2034 (the
“Notes”).

Specifically, the Company proposes to substitute one of its subsidiaries,
National Public Finance Guarantee Corporation, for another subsidiary, MBIA
Insurance Corporation, in the definitions of “Restricted Subsidiary” in the
Indenture, dated as of August 1, 1990 (the “1990 Indenture”), and “Principal
Subsidiaries” in the Senior Indenture, dated as of November 24, 2004 (the
“2004 Indenture”), pursuant to which the Notes were issued.

As described in the documentation related to the consent solicitation, the
Company believes the proposed amendments will be beneficial to both the
Company and its noteholders.

In the event that the proposed amendments become operative, the Company will
pay a consent fee of $10 per $1,000 principal amount of Notes to all
consenting noteholders, on terms and conditions described in the consent
solicitation documentation.

In connection with the consent solicitation, the Company has entered into a
lock-up agreement with holders of approximately 25.4% of the principal amount
of the Notes outstanding under the 1990 Indenture and approximately 3.5% of
the principal amount of the Notes outstanding under the 2004 Indenture,
pursuant to which they have agreed to (i) deliver or cause to be delivered, as
soon as practicable, valid consents to the proposed amendments and (ii) not to
revoke such consents for 30 days except if the terms or conditions of the
consent solicitation are materially modified.

The consent solicitation will expire at 5:00 P.M., New York City Time, on
November 21, 2012.

Holders of Notes who have any questions regarding the terms of the consent
solicitation should contact the Solicitation Agent, Deutsche Bank Securities,
at (855) 287-1922 (U.S. Toll-free) or (212) 250-7527. Copies of the consent
solicitation statement, the form of consent or any related documents may be
obtained from i-Deal LLC, the Information Agent, by calling (888) 593-9546
(U.S. Toll-free) or (212) 849-5000. In addition, beneficial owners wishing to
review the consent solicitation statement may also access it by visiting the
following website: http://docs.mbia.com.

THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE
AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES AND
SHALL NOT CONSTITUTE AN OFFER, SOLICITATION OR SALE OF ANY SECURITIES IN ANY
JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.

MBIA Inc., headquartered in Armonk, New York is a holding company whose
subsidiaries provide financial guarantee insurance, as well as related
reinsurance, advisory and portfolio services, for the public and structured
finance markets, and asset management advisory services. The Company services
its clients around the globe with offices in New York, Denver, San Francisco,
Paris, London, Madrid and Mexico City. Please visit MBIA's website at
www.mbia.com.

Forward-Looking Statements

The information contained in this press release should be read in conjunction
with our filings made with the Securities and Exchange Commission. This
release includes statements that are not historical or current facts and are
"forward-looking statements" made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. The words "believe,"
"anticipate," "project," "plan," "expect," "intend," "will likely result,"
"looking forward" or "will continue," and similar expressions identify
forward-looking statements. These statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
historical earnings and those presently anticipated or projected, including,
among other risks and uncertainties, whether the Company will realize, or will
be delayed in realizing, insurance loss recoveries expected in disputes with
sellers/servicers of RMBS transactions at the levels recorded in its financial
statements, the possibility that the Company will experience severe losses or
liquidity needs due to increased deterioration in its insurance portfolios and
in particular, due to the performance of CDOs including multi-sector, CMBS and
CRE CDOs and RMBS, the failure to obtain regulatory approval to implement our
risk reduction and liquidity strategies, the possibility that loss reserve
estimates are not adequate to cover potential claims, the possibility that the
Company’s obligations will be accelerated if MBIA Insurance Corporation
becomes subject to a rehabilitation or liquidation proceeding, the Company's
ability to access capital and the Company's exposure to significant
fluctuations in liquidity and asset values within the global credit markets,
in particular in the ALM business, the Company's ability to fully implement
its strategic plan, including its ability to achieve high stable ratings for
National or any other insurance subsidiaries, and the Company's ability to
commute certain of its insured exposures, including as a result of limited
available liquidity, the Company's ability to favorably resolve litigation
claims against the Company, and changes in general economic and competitive
conditions. These and other factors that could affect financial performance or
could cause actual results to differ materially from estimates contained in or
underlying the Company's forward-looking statements are discussed under the
"Risk Factors" section in MBIA Inc.'s most recent Annual Report on Form 10-K
and Quarterly Report on Form 10-Q, which may be updated or amended in the
Company's subsequent filings with the Securities and Exchange Commission. The
Company cautions readers not to place undue reliance on any such
forward-looking statements, which speak only to their respective dates. The
Company undertakes no obligation to publicly correct or update any
forward-looking statement if it later becomes aware that such result is not
likely to be achieved.

Contact:

MBIA Inc.
Media:
Kevin Brown, +1-914-765-3648
or
Investor Relations:
Greg Diamond, +1-914-765-3190
www.mbia.com
 
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