MBIA Inc. (the “Company” or “MBIA”) (NYSE: MBI) announced today that it has commenced a consent solicitation relating to the Indentures governing its 6.40% Senior Notes due 2022, 7.00% Debentures due 2025, 7.15% Debentures due 2027, 6.625% Debentures due 2028 and 5.70% Senior Notes due 2034 (the “Notes”).
Specifically, the Company proposes to substitute one of its subsidiaries, National Public Finance Guarantee Corporation, for another subsidiary, MBIA Insurance Corporation, in the definitions of “Restricted Subsidiary” in the Indenture, dated as of August 1, 1990 (the “1990 Indenture”), and “Principal Subsidiaries” in the Senior Indenture, dated as of November 24, 2004 (the “2004 Indenture”), pursuant to which the Notes were issued.
As described in the documentation related to the consent solicitation, the Company believes the proposed amendments will be beneficial to both the Company and its noteholders.
In the event that the proposed amendments become operative, the Company will pay a consent fee of $10 per $1,000 principal amount of Notes to all consenting noteholders, on terms and conditions described in the consent solicitation documentation.In connection with the consent solicitation, the Company has entered into a lock-up agreement with holders of approximately 25.4% of the principal amount of the Notes outstanding under the 1990 Indenture and approximately 3.5% of the principal amount of the Notes outstanding under the 2004 Indenture, pursuant to which they have agreed to (i) deliver or cause to be delivered, as soon as practicable, valid consents to the proposed amendments and (ii) not to revoke such consents for 30 days except if the terms or conditions of the consent solicitation are materially modified. The consent solicitation will expire at 5:00 P.M., New York City Time, on November 21, 2012. Holders of Notes who have any questions regarding the terms of the consent solicitation should contact the Solicitation Agent, Deutsche Bank Securities, at (855) 287-1922 (U.S. Toll-free) or (212) 250-7527. Copies of the consent solicitation statement, the form of consent or any related documents may be obtained from i-Deal LLC, the Information Agent, by calling (888) 593-9546 (U.S. Toll-free) or (212) 849-5000. In addition, beneficial owners wishing to review the consent solicitation statement may also access it by visiting the following website: http://docs.mbia.com. THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES AND SHALL NOT CONSTITUTE AN OFFER, SOLICITATION OR SALE OF ANY SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.