Assured Guaranty Commits Up To $248 Mln To Brightline Florida Restructuring
(RTTNews) - Assured Guaranty Inc., a subsidiary of Assured Guaranty Ltd. (AGO), a credit protection products provider, Friday said it has agreed to provide up to $248 million in financing as part of the financial restructuring of Brightline Florida Holdings LLC and its affiliates.
Assured Guaranty said Brightline Trains Florida LLC, the obligor on senior bonds insured by the company, has not filed for Chapter 11 protection, and the bankruptcy filings of certain other Brightline Florida entities do not alter payment obligations on the insured bonds.
Under a restructuring support agreement, Brightline Trains Florida will receive $490 million of new capital after the Brightline Florida entities exit bankruptcy, comprising $350 million of new junior debt and $140 million of additional senior debt. Assured Guaranty will provide $70 million of the new senior debt.
Certain Brightline Florida financial stakeholders, including Assured Guaranty, have also agreed to provide Brightline Trains Florida $258 million of post-petition funding during the bankruptcy process, with Assured Guaranty providing up to $178 million. The funding will rank equally with existing senior debt and will be repaid when the entities exit bankruptcy.
Further, Brightline Trains Florida will offer senior bondholders a fee to defer scheduled interest payments. Assured Guaranty will guarantee timely payment of deferred interest on insured bonds.
Assured Guaranty insures slightly more than 50% of Brightline Trains Florida's existing senior bonds and will exercise the corresponding majority debt voting position.
On the NYSE, Assured Guaranty shares closed down 0.86% at $68.40 on Thursday.
