By Devika Patel and Cristal Cody
Knoxville, Tenn., May 19 – Assured Guaranty US Holdings Inc. priced an upsized $500 million of 3.15% 10-year senior notes (Baa2/A// Kroll: A+) with a spread of Treasuries plus 150 basis points on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.717 to yield 3.183%.
Initial price talk was in the Treasuries plus 162.5 bps area for an expected $300 million offering, a source said.
The notes will be guaranteed by Assured Guaranty Ltd.
The bookrunners are Goldman Sachs & Co. LLC and BofA Securities, Inc.
Proceeds will be used for general corporate purposes, which may include the repurchase or redemption of all or a portion of the $100 million Assured Guaranty Municipal Holdings Inc.’s 6.875% Quarterly Interest Bonds due Dec. 15, 2101 and/or the $230 million 6.25% notes due Nov. 1, 2102, according to a 424B3 filing with the SEC.
Assured is a Hamilton, Bermuda, provider of credit enhancement for municipal finance, structured finance and mortgage markets.
| Issuer: | Assured Guaranty US Holdings Inc.
|
| Guarantor: | Assured Guaranty Ltd.
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| Description: | Senior notes
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| Amount: | $500 million
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| Maturity: | June 15, 2031
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| Bookrunners: | Goldman Sachs & Co. LLC and BofA Securities, Inc.
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| Co-manager: | Siebert Williams Shank & Co. LLC
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| Coupon: | 3.15%
|
| Price: | 99.717
|
| Yield: | 3.183%
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| Spread: | Treasuries plus 150 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until March 15, 2031, then a par call
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| Trade date: | May 19
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| Settlement date: | May 26
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| Ratings: | Moody’s: Baa2
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| S&P: A
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| Kroll: A+
|
| Distribution: | SEC registered
|
| Guidance: | Treasuries plus 162.5 bps area
|
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