MBIA Inc. Announces the Successful Completion of its 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
ARMONK, N.Y. -- November 26, 2012
MBIA Inc. (the “Company” or “MBIA”) (NYSE: MBI) announced today that it has
successfully completed its consent solicitation resulting in the amendments to
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”) described in the Company’s consent solicitation
statement dated November 7, 2012 (the “Consent Statement”).
The amendments substitute one of the Company’s 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.
MBIA received the consents of holders as of the record date of a majority in
principal amount of all outstanding Notes under the 1990 Indenture voting as a
single class and from holders as of the record date of a majority in principal
amount of the outstanding 5.70% Senior Notes due 2034 issued under the 2004
Indenture, prior to the expiration time of the consent solicitation. As a
result, MBIA and The Bank of New York Mellon, as trustee, have entered into
supplemental indentures, which effect the above amendments to the 1990
Indenture and the 2004 Indenture described in the Consent Statement.
MBIA has made cash payments of $10.00 for each $1,000 in aggregate principal
amount of Notes for which a consent was provided prior to the expiration time
of the consent solicitation.
Deutsche Bank Securities Inc. acted as solicitation agent in connection with
the consent solicitation.
MBIA also announced that it has repurchased approximately $170 million of
outstanding principal amount of Notes issued under the 2004 Indenture in
privately negotiated reverse inquiry transactions directly from holders as of
the record date that had consented pursuant to the consent solicitation
described above. MBIA has previously disclosed that it may repurchase its debt
from time to time in the open market or in private transactions.
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
Kevin Brown, +1-914-765-3648
Greg Diamond, +1-914-765-3190
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