Bond insurer Assured Guaranty Corp. (AGC) will provide a financial
guaranty insurance policy for $200 million of Automobile Receivables
Backed Notes priced today by AmeriCredit Automobile Receivables Trust
2010-A.
"This is the first public asset-backed transaction we have guaranteed
outside of the secondary market for some time, and we look forward to
increasing our participation in the resurgent ABS market.” said Paul
Livingstone, Senior Managing Director for Structured Finance at AGC.
"Further, we are very pleased to be working with AmeriCredit, a
long-time client whose track record reflects its strong market position
and experienced management.”
The issue will be collateralized by approximately $238 million of loans
financing automobiles, light duty trucks and vans. In addition to the
overcollateralization, investors and AGC are protected in the
transaction by excess cashflow, an interest spread account and limited
cross-collateralization with certain other AmeriCredit transactions.
The AGC financial guaranty insurance policy will unconditionally and
irrevocably guarantee payments of interest and principal due on each
insured distribution date.
AGC is a financial guaranty insurance subsidiary of Assured Guaranty
Ltd. (together with its subsidiaries, Assured Guaranty or the Company)
(NYSE:AGO). Assured Guaranty is a Bermuda-based holding company that
provides, through its operating subsidiaries, credit protection products
to the public finance, infrastructure and structured finance markets in
the United States as well as internationally. The Company applies its
credit underwriting expertise, risk management skills and capital
markets experience to develop insurance, reinsurance and credit
derivative products. The Company's principal product is a guaranty of
principal and interest payments on debt securities issued by
governmental entities such as U.S. state or municipal authorities,
obligations issued for international infrastructure projects, and
asset-backed securities (ABS).
Cautionary Statement Regarding Forward-Looking Statements:
Any forward-looking statements made in this press release reflect the
current views of Assured Guaranty with respect to future events and
financial performance and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such
statements involve risks and uncertainties that may cause actual results
to differ materially from those set forth in these statements. For
example, Assured Guaranty’s forward-looking statements could be affected
by: (1) rating agency action, including a ratings downgrade at any time
of Assured Guaranty Ltd. or any of its subsidiaries and/or of
transactions insured by such subsidiaries, both of which have occurred
in the past; (2) developments in the world's financial and capital
markets that adversely affect issuers’ payment rates, the Company’s loss
experience, its ability to cede exposure to reinsurers, its access to
capital, its unrealized (losses) gains on derivative financial
instruments or its investment returns; (3) changes in the world’s credit
markets, segments thereof or general economic conditions; (4) more
severe or frequent losses implicating the adequacy of the Company’s loss
reserve; (5) the impact of market volatility on the mark-to-market of
the Company’s contracts written in credit default swap form; (6)
reduction in the amount of reinsurance portfolio opportunities available
to the Company; (7) decreased demand or increased competition; (8)
changes in applicable accounting policies or practices; (9) changes in
applicable laws or regulations, including insurance and tax laws; (10)
other governmental actions; (11) difficulties with the execution of the
Company’s business strategy; (12) contract cancellations; (13) the
Company’s dependence on customers; (14) loss of key personnel; (15)
adverse technological developments; (16) the effects of mergers,
acquisitions and divestitures; (17) natural or man-made catastrophes;
(18) other risks and uncertainties that have not been identified at this
time; (19) management's response to these factors; and (20) other risk
factors identified in the Company’s filings with the Securities and
Exchange Commission. Readers are cautioned not to place undue reliance
on these forward-looking statements which are made as of March 26,
Assured Guaranty undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.
