AMBC - Ambac closes on deleveraging transaction simplifying capital structure

Ambac Financial (AMBC) acquires 100% of the outstanding obligations of Corolla Trust, a move that will reduce subsidiary Ambac Assurance Corp.'s ("AAC") nominal debt and accrued interest outstanding by ~$73M.In exchange AAC issues 5.1% senior surplus notes, or SSNs.Corolla Trust was formed in 2014 and is sole owner of an AAC junior surplus note with a face amount of $350M and accrued and unpaid interest of $164M through Jan. 22, 2021.Ambac held the residual interest in Corolla Trust, which was also exchanged in return for AAC-issued 5.1% SSNs.After the exchange, AAC expects to collapse Corolla Trust."The successful completion of the exchange of the Corolla Trust obligations for Senior Surplus Notes represents another significant step in our continuous pursuit to deleverage and simplify AAC’s capital structure, consistent with our strategic priorities," said Ambac President and CEO Claude Le Blanc.See AMBC's cash interest paid over the past 11 quarters in chart below.SA

For further details see:

Ambac closes on deleveraging transaction, simplifying capital structure