Event Publicly Available Information:
Per the press release, Assured Guaranty Municipal Corp. completed its merger with and into Assured Guaranty Inc. (AG), with AG as surviving company. Has a successor event occurred with respect to Assured Guaranty Municipal Corp.?
| Date | Description | Document |
|---|---|---|
| Ongoing | The Americas DC Legal Subcommittee met on November 15, 2024, to further discuss the Assured Guaranty Municipal Corp. Successor question, including information submitted by market participants in response to the Americas DC’s October 30 DC Statement, and will continue discussions this week. | |
| Ongoing | Americas DC Meeting Statement - October 29, 2024 The Americas DC Legal Subcommittee met on October 29, 2024, to further discuss the Assured Guaranty Municipal Corp. (AGMC) Successor question, including application of the Successor provisions of the Additional Provisions for Monoline Insurer Reference Entities published by ISDA on September 15, 2014 (the Monoline Supplement), and is issuing the following statement in connection with such question. Under the 2014 Definitions, the determination of a Successor focuses on whether a given entity "succeeds" to the "Relevant Obligations" of the Reference Entity. An entity "succeeds" to a Reference Entity and its Relevant Obligations when it "(i) assumes or becomes liable for such Relevant Obligations whether by operation of law or pursuant to any agreement […]". Section 2.2(d) of the 2014 Definitions. An entity may only be a Successor if, among other matters, the Reference Entity had at least one Relevant Obligation outstanding immediately prior to the Succession Date and such entity succeeds to all or part of at least one Relevant Obligation of the Reference Entity. Section 2.2(c) of the 2014 Definitions. "Relevant Obligations" are defined to mean "the Obligations of the Reference Entity which fall within the Obligation Category "Bond or Loan" and which are outstanding immediately prior to the Succession Date". Section 2.2(f) of the 2014 Definitions. An “Obligation” is defined to include “any obligation of the Reference Entity (either directly or as provider of a Relevant Guarantee) […]”. Section 3.1(a) of the 2014 Definitions. Under the Monoline Supplement, a “Qualifying Policy” is treated as an “Obligation” of the Reference Entity, including for purposes of the Successor provisions of the 2014 Definitions. See Paragraph (b) of the Monoline Supplement (amending Section 3.1(a) of the 2014 Definitions by adding the words “or Qualifying Policy” after the words “or as provider of a Relevant Guarantee”). Further, “distributions payable under an Insured Instrument in the form of a pass-through certificate or similar funded beneficial interest” are included in the “Bond” Obligation Category (see Paragraph (c)(1) of the Monoline Supplement). As a result, to the extent the Monoline Supplement is applicable to a given Credit Derivative Transaction, any Qualifying Policy of AGMC that was outstanding immediately prior to the relevant merger date should be taken into account for purposes of determining whether an entity “succeeded” to AGMC under such Credit Derivative Transaction. The Americas DC Legal Subcommittee has not obtained sufficient information to conclude that Assured Guaranty Municipal Corp. (AGMC) had at least one Relevant Obligation (whether in the form of a Bond or Loan issued/ incurred directly by AGMC or as a result of AGMC providing a Relevant Guarantee or Qualifying Policy) outstanding immediately prior to the August 1, 2024 merger of AGMC into Assured Guaranty Inc., although the Americas DC notes that Moody’s issued a credit rating announcement on August 2, 2024 stating that “[t]he reorganization came into effect as of August 1, 2024, and by operation of law, all securities that had been insured by Assured Guaranty Municipal Corp. are now guaranteed obligations of Assured Guaranty Inc. Over time, we will be updating the display on our websites to reflect that rated securities previously guaranteed by Assured Guaranty Municipal Corp. are now guaranteed by Assured Guaranty Inc.” (see here). Other rating agencies have issued similar statements (see here). Eligible Market Participants are therefore encouraged to provide the DC Secretary with publicly available information describing the existence of any Relevant Obligation of AGMC immediately prior to the August 1, 2024 merger of AGMC into Assured Guaranty Inc. prior to noon on November 12, 2024. Such publicly available information may be submitted via email to the following email address: DCSecretary@cdsdeterminationscommittees.org | |
| Ongoing | The Americas DC Legal Subcommittee met today to begin discussions with respect to whether there is a Successor to Assured Guaranty Municipal Corp. The Americas DC will continue discussions this week. | |
| Request Accepted by DC | ||
| Pending DC Consent |