- Ambac Financial (NASDAQ:AMBC) starts an offer to exchange all of Ambac Assurance's auction market preferred shares--or AMPS-- for AAC's 5.1% senior surplus notes due 2020 and from AMBC cash and warrants to buy AMBC common stock.
- For each $25,000 of liquidation preference of AMPS, holders are offered: AAC senior surplus notes with a total outstanding amount equal to $13,875, plus accrued interest, and from AMBC, $500 in cash and 37.3076 warrants to buy an equivalent number of shares of AMBC common stock at an exercise price of $16.67 per share.
- The company is also soliciting proxies from AMPS holders to vote in favor of a resolutions passed at a special meeting of AAC's shareholders.
- Holders that tender after 5PM NY time on July 17, 2018 will not receive the cash consideration or the warrants.
- The exchange offer and proxy solicitation are scheduled to expire at 5PM NY time on Aug. 1, 2018.
- Source: Press Release
- Previously: Ambac enters pact to repurchase AMPS in effort to deleverage(June 25)
- Now read: HomeStreet to sell part of its single family mortgage servicing rights
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