Assured Guaranty Issues Debt Service Reserve Guarantee to Replace Yorkshire Water Liquidity Facilities
28 März 2022 - 7:30AM
Business Wire
£170 million DSR Guarantee for Yorkshire Water
Services Limited
Assured Guaranty UK Limited (AGUK)* announced that it has issued
a £170 million, five-year debt service reserve (DSR) guarantee to
benefit Yorkshire Water Services Limited, a member of the Yorkshire
Water group. The DSR guarantee provided by AGUK, who are rated AA
by S&P Global Ratings and A1 by Moody’s Investors Service, will
replace the existing liquidity facility provided by banks within
the Yorkshire Water group’s securitisation structure.
AGUK’s DSR guarantee was structured to fit within Yorkshire
Water Services Limited’s existing securitisation documents and
covers certain senior payment obligations due to bondholders and
other senior creditors.
AGUK is a subsidiary of Assured Guaranty Ltd. (together with its
subsidiaries, Assured Guaranty), the only financial guarantee
company currently providing financial guarantees in the UK and
European financial markets. In addition to guaranteeing timely
payment of principal and interest on bonds, Assured Guaranty
provides guarantees for other debt service obligations of borrowers
across the infrastructure and utilities sectors.
Dominic Nathan, Senior Managing Director, AGUK, commented: “Our
Debt Service Reserve guarantee provides a cost-effective and
competitive alternative to bank facilities for large UK water and
sewerage companies. As this transaction demonstrates, it fits well
within an established whole business securitisation structure. We
are delighted to have provided this product to Yorkshire Water and
expect that other companies will also see the benefits of this type
of financial guarantee from Assured Guaranty. Our strong credit
standing and proven stability over more than three decades are
reasons to be confident the DSR guarantee will be available for the
long term without having to be renewed annually in the bank
market.”
David Gregg, Head of Corporate Finance, Yorkshire Water,
commented: “Yorkshire Water welcomed the opportunity to work with
Assured Guaranty on the debt service reserve guarantee to be able
to ensure an appropriate fit with our existing financing terms. The
successful outcome reflects a collaborative approach providing a
longer-term solution to meet DSR requirements that is beneficial to
the group and in the best interests of Yorkshire Water’s
customers.”
Yorkshire Water is the fifth largest water and sewerage company
in the UK both in terms of regulatory capital value and customers
served. It provides its services to approximately 2 million
households and 140,000 business premises in northern England.
Assured Guaranty’s advisers on the transaction were Allen &
Overy LLP. Yorkshire Water were advised by Centrus and Linklaters
LLP.
IMPORTANT NOTICE
All of the securities have been sold, and 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.
* AGUK (company number 2510099) is authorised by the Prudential
Regulation Authority and regulated by the Financial Conduct
Authority and the Prudential Regulation Authority. AGUK provides
its financial guarantee together with a co-guarantee from its
affiliate Assured Guaranty Municipal Corp. (AGM). Both AGUK and AGM
are subsidiaries of Assured Guaranty Ltd. (AGL and, together with
its subsidiaries, Assured Guaranty). Through its subsidiaries,
Assured Guaranty provides credit enhancement products to the U.S.
and international public finance, infrastructure and structured
finance markets, and also provides asset management services. AGL
is a publicly traded (NYSE: AGO), Bermuda-based holding company.
More information on AGL and its subsidiaries can be found at
AssuredGuaranty.com.
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,
including DSR guarantees; the continued availability of the DSR
guarantee; the relative merits of DSR guarantees and bank
facilities for whole business securitisation structures; 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 28 March
2022. 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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version on businesswire.com: https://www.businesswire.com/news/home/20220327005038/en/
Investor Relations: Robert Tucker, +1 212-339-0861 Senior
Managing Director, Investor Relations and Corporate Communications
rtucker@agltd.com
Media: Ashweeta Durani, +1 212-408-6042 Vice President,
Corporate Communications adurani@agltd.com
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