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Assured Guaranty Wraps Durham University Bond Issuance
[August 16, 2018]

Assured Guaranty Wraps Durham University Bond Issuance


Assured Guaranty (Europe) plc (AGE)* announced that it has guaranteed principal and interest payments on approximately £90 million of bonds issued by Mount Oswald Colleges LLP. The bond issuance will finance the construction of two new colleges designed for student residence at Durham University (the University)**. As a result of the guarantee from AGE*, the bonds are rated AA by S&P Global Ratings.

The 46-year inflation-linked bond, whose pricing on 14 August 2018 took advantage of low long-term rates, was issued as a private placement into the UK market.

Interserve will build the halls within two years, and Campus Living Villages (CLV) will undertake facilities management services over the project term. Equitix is the main sponsor of the project company, with CLV as a co-sponsor. The University has a 15% stake in the project company.

The two new colleges financed by the bonds will provide a total of approximately 1,000 new bedspaces for Durham students. Both colleges will be located on campus, next to existing colleges, and are designed to house both undergraduate and postgraduate students in a mix of en-suite and townhouse units.

Dominic Nathan, Managing Director, AGE, commented:

"We are delighted to have closed another student accommodation financing for such a prestigious university. Our wrapped bond solution, with long maturities and inflation-linked debt, continues to provide an efficient form of financing for projects of this type. The underlying demand for Assured Guaranty wrapped paper remains strong, as investors are attracted by the high rating we provide to the bonds and the associated low capital charges, as well as the efficient asset-liability matching this type of investment can provide."

AGE* guarantees timely payment of scheduled principal and interest to bondholders throughout the life of the bonds, in accordance with the terms of its financial guarantees.

The advisers of AGE* on the deal wereAshurst (legal adviser), Aecom (technical adviser), Cushman & Wakefield (demand adviser) and Willis (insurance adviser). Traderisks acted as bond lead manager.



IMPORTANT NOTICE

All of the securities having been sold, this announcement is for information purposes only. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities.


The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended ("Securities Act"), or with any securities regulatory authority of any state or jurisdiction of the United States, and may not be offered, sold or transferred, directly or indirectly, in the United States absent registration under the Securities Act or an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the securities laws of any state or other jurisdiction of the United States.

* AGE (company number 2510099) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. AGE provides its financial guarantee together with a co-guarantee from its affiliate Assured Guaranty Municipal Corp. (AGM).

Through its subsidiaries, Assured Guaranty Ltd. (AGL (News - Alert) and, together with its subsidiaries, Assured Guaranty) is the leading provider of financial guarantees for principal and interest payments due on municipal, public infrastructure and structured financings. Its subsidiary AGM guarantees international infrastructure and U.S. municipal bonds - and was previously named Financial Security Assurance Inc. (FSA) before becoming an Assured Guaranty company in July 2009. AGE, a subsidiary of AGM, is Assured Guaranty's European operating platform. AGL is a publicly traded (NYSE: AGO), Bermuda-based holding company. More information on AGL and its subsidiaries can be found at AssuredGuaranty.com.

** THE BONDS WERE NOT FOR SALE IN THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN NOR SOLD FOR BENEFICIAL OWNERSHIP BY PERSONS IN THOSE JURISDICTIONS.

Cautionary Statement Regarding Forward-Looking Statements:

Any forward-looking statements made in this press release reflect Assured Guaranty's current views with respect to future events and are made pursuant to the safe harbour 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. These risks and uncertainties include, but are not limited to, those resulting from Assured Guaranty's inability to execute its strategies; the demand for Assured Guaranty's financial guarantees; further actions that the rating agencies may take with respect to Assured Guaranty's financial strength ratings; adverse developments in Assured Guaranty's guaranteed portfolio; and other risks and uncertainties that have not been identified at this time, management's response to these factors, and other risk factors identified in AGL's filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of 17 August 2018. 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, except as required by law.


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