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Purchase price for Syncora Holdings' New York financial guarantee unit increased

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Purchase price for Syncora Holdings' New York financial guarantee unit increased

Star Insurance Holdings LLC will now acquire Syncora Guarantee Inc. for an increased cash purchase price of $429 million, versus the previous price of $392.5 million, as part of an amended agreement.

The new amount remains subject to adjustment. Additionally, Star Insurance will assume all of the Syncora Holdings Ltd. financial guarantee subsidiary's obligations under the pass-through trust preferred securities issued by the Twin Reefs Pass-Through Trust.

Syncora also anticipates that after the transaction closes, it will have assets, excluding a value attributed to its net operating loss carry forwards, valued within the range of about $45 million to $60 million, primarily consisting of cash and investments, certain noncash assets of Pike Pointe Holdings LLC and an 80% interest in Swap Financial Group LLC. There is no guarantee, however, that Syncora will be able to realize fully on the noncash assets.

As part of the amended agreement, which came after receipt of an additional unsolicited proposal, Syncora agreed to terminate the period during which it was allowed to consider alternate acquisition proposals. Under the original agreement, Syncora could consider other acquisition proposals received prior to 5 p.m. ET on Sept. 13.

The deal is expected to close by the end of the fourth quarter or during the first quarter of 2020, subject to customary conditions, approval by the New York State Department of Financial Services and clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

Star Insurance is an entity organized by GoldenTree Asset Management LP on behalf of the latter's managed funds and accounts.