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MBIA seeks consents to amend definitions for five note series
By Toni Weeks
San Diego, Nov. 7 - MBIA Inc. began a consent solicitation for its 6.4% senior notes due 2022, 7% debentures due 2025, 7.15% debentures due 2027, 6 5/8% debentures due 2028 and 5.7% senior notes due 2034.
The company is proposing to substitute MBIA Insurance Corp. for National Public Finance Guarantee Corp., both company subsidiaries, in the definition of "restricted subsidiary" in the indenture dated Aug. 1, 1990 and the definition of "principal subsidiaries" in the senior indenture dated Nov. 24, 2004. MBIA said in a press release that the amendments will be beneficial to both the company and the noteholders.
If the amendments become operative, MBIA will pay a consent fee of $10 per $1,000 principal amount of notes to all consenting noteholders.
In connection with the consent solicitation, the company has entered into a lock-up agreement with holders of roughly 25.4% principal amount of the outstanding notes under the 1990 indenture and about 3.5% principal amount of the outstanding notes under the 2004 indenture to deliver valid consents and not revoke those consents for 30 days, unless the terms of the consent solicitation have been materially modified.
The solicitation will expire at 5 p.m. ET on Nov. 21.
The solicitation agent is Deutsche Bank Securities (855 287-1922 or 212 250-7527). The information agent is i-Deal LLC (888 593-9546 or 212 849-5000).
Armonk, N.Y.-based MBIA is a holding company whose subsidiaries provide financial guarantee insurance and related reinsurance, advisory and portfolio services for the public and structured finance markets as well as asset management advisory services.
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