trending Market Intelligence /marketintelligence/en/news-insights/trending/RAVlwFPKzNHnNM16GXV5qw2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Syncora Holdings unit starts private exchange offers related to transaction support agreement

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Part Two IFRS 9 Blog Series: The Need to Upgrade Analytical Tools

2018 US Property Casualty Insurance Market Report


Fintech Funding Flows To Insurtech In February

Syncora Holdings unit starts private exchange offers related to transaction support agreement

SyncoraHoldings Ltd. unit Syncora Holdings US Inc. started private offersto exchange up to $55.2 million of SyncoraGuarantee Inc.'s outstanding 6% surplus notes due 2024 and up to$14.8 million of Syncora Guarantee's outstanding 5% surplus notes due 2011, ineach case including accrued and unapproved interest.

There is currently approximately $574.9 million outstanding principalamount of 2024 notes owned by third parties, including paid-in-kind interest,and about $144.2 million of 2011 notes owned by third parties, includingpaid-in-kind interest. For each $1 of the outstanding 2024 and 2011 notestendered, including paid-in-kind interest, noteholders will receive 0.301997 ofnew Syncora Holdings Ltd. common shares. The 55.2 million exchange cap for the2024 notes comprises about $45.8 million principal amount, plus accrued andunapproved interest of about $9.3 million. The $14.8 million exchange cap forthe 2011 notes is composed of about $11.5 million principal amount, plusaccrued and unapproved interest of about $3.3 million.

The exchange offers will expire at 12:00 noon ET on Aug. 5,unless extended or earlier terminated.

Moelis & Co. and Odeon Capital Group LLC are acting asco-dealer managers for the exchange offers.

In addition, Syncora Holdings Ltd. is soliciting proxiesfrom the holders of the company's outstanding fixed/floating series A perpetualnoncumulative preference shares to vote in favor of a resolution that will varythe terms attached to the existing preferred shares. Only eligible holders ofthe existing preferred shares and surplus notes will be authorized toparticipate in the exchange offers and/or participate in Syncora Holdings Ltd.'spreferred proxy solicitation.

The exchange offers and the amendment of the preferredshares' terms are part of a transactionsupport agreement. The participating security holders represent 83%of the existing Syncora Guarantee surplus notes and 85% of the existing SyncoraHoldings Ltd. preferred shares, in each case excluding the securities held bythe company.