MBIA Insurance Announces Sale Of MBIA UK Insurance To Assured Guaranty

(RTTNews) - MBIA Insurance Corp. (MBI) announced its subsidiary, MBIA UK (Holdings), has entered into an agreement to sell MBIA UK Insurance to Assured Guaranty Corp., a subsidiary of Assured Guaranty Ltd. (AGO). The purchase price consists of the transfer to MBIA UK Holdings of notes issued by Zohar II 2005-1 CLO (Zohar II Notes) with an aggregate outstanding principal amount of approximately $347 million and a cash payment by MBIA UK Holdings to Assured of $23 million.

Anthony McKiernan, CFP and President of MBIA Insurance Corp., said, "As we have previously stated, the sale of MBIA UK is one of the elements of our plan to enable MBIA Corp. to address its insurance obligations regarding the Zohar II Notes. The acquisition of the Assured Zohar II Notes reduces MBIA Corp.'s liability under its Zohar II policy and may facilitate our ability to address the remaining Zohar II Notes on or before their maturity."