Assured Guaranty to remarket unit's 8.5% notes due 2014 Thursday

By Susanna Moon

Chicago, May 21 - Assured Guaranty Ltd. and its wholly owned subsidiary Assured Guaranty US Holdings Inc. expect to remarket on Thursday the 8.5% senior notes due 2014 issued by the subsidiary as part of the parent's corporate units.

The companies plan to remarket the notes exclusively to the parent company or one of its affiliates, according to a press release by Assured Guaranty.

All notes acquired by the company or its affiliate will be retired on June 1 using cash on hand.

Holders of the outstanding notes that are components of the corporate units and holders of notes held separately from the corporate units who elect to participate in a successful remarketing will receive the remaining proceeds, if any, from the remarketing, after deduction of the remarketing fee and, in the case of the holders of corporate units, after the satisfaction of the holders' obligations under the related purchase contracts to purchase the company's common shares on June 1, the release noted.

The reset rate and interest payment dates for the notes will be established, and the modified terms of the notes will be set, on the remarketing date and will be effective on June 1.

The reset rate will be determined by the remarketing agent based on the bid submitted by the company or its affiliate that results in a price for the notes equal to at least par plus the remarketing fee, which is expected to be $431,250.

Assured is a Hamilton, Bermuda, provider of credit enhancement for municipal finance, structured finance and mortgage markets.

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