Ambac plans redemption of floaters, tier 1 notes through new Sitka notes

Chicago, June 24 – Ambac Financial Group, Inc. announced that it will redeem notes originally issued by Ambac LSNI, LLC and Ambac Assurance Corp. through the issue of new notes by a newly formed special purpose entity named Sitka Holdings, LLC, according to a press release.

The issuer will redeem all of the $1.625 billion outstanding LSNI insured floating-rate notes that have a rate based on Libor plus 500 basis points, which are also qualifying tier 1 notes, that are due 2023. The redemption will also include the secure note issued by Ambac Assurance Corp. that was concurrent with the issuance of the tier 1 notes.

The balance of the tier 1 notes will be redeemed utilizing other available sources of liquidity.

Ambac is a New York-based holding company that, via subsidiaries, provides financial guarantees to clients in the public and private sectors globally.

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