Water

Guarantee Guarantee Issue Debt Services Reserve Guarantee to replace Yorkshire Water Liquidity Facility

£170m DSR guarantee for Yorkshire Water Services Ltd

London, 28 March 2022–(BUSINESS WIRE)–Assured Guaranty UK Limited (AGUK)* announces the issuance of a £170 million five-year Debt Service Reserve (DSR) guarantee for the benefit of Yorkshire Water Services Limited, a member of the Yorkshire Water Group. AGUK The DSR guarantee provided (rated AA by S&P Global and A1 by Moody’s Investors Service) will replace the existing liquidity facility provided by the banks within the Yorkshire Water securitization structure.

AGUK’s DSR guarantee structure is in line with Yorkshire Water Services Limited’s existing securitization documents and covers certain senior payment obligations due to bondholders and other senior creditors.

AGUK, a subsidiary of Assured Guaranty Ltd. (together with its subsidiary Assured Guaranty), is currently the only financial guarantee company providing financial guarantees in the UK and European financial markets. In addition to guaranteeing the timely payment of principal and interest on bonds, Assured Guaranty guarantees other debt service obligations of borrowers in the infrastructure and utilities sector.

Dominic Nathan, Senior Managing Director of AGUK commented:
“Our Debt Servicing Reserve Guarantee provides a cost-effective and competitive alternative to banking facilities for large UK water and sewerage companies. It is well suited for the securitization of established holistic businesses, as this transaction has shown Structure. We are delighted to Yorkshire Water and expect other companies to see the benefits of this type of financial guarantee from Assured Guaranty. Our strong credit profile and proven stability over three decades is reason to believe in DSR Guarantees will be provided on a long-term basis without having to be renewed every year in the banking market.”

Yorkshire Water Treasurer David Gregg commented:
“Yorkshire Water is delighted to have the opportunity to work with Assured Guaranty on the Debt Service Reserve Guarantee to ensure a match with our existing funding terms. The successful outcome reflects a collaborative approach that provides a long-term approach to meeting DSR requirements A solution that is good for the group and in the best interests of Yorkshire Water’s customers.”

Yorkshire Water is the fifth largest water and wastewater company in the UK in terms of regulatory capital value and customers served. It serves approximately 2 million households and 140,000 places of business in the North of England.

Assured Guaranty was advised on the transaction by Allen & Overy LLP. Yorkshire Water was advised by Centrus and Linklaters LLP.

Important reminder

All securities have been sold and this announcement is for informational 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 U.S. Securities Act of 1933, as amended (the “Securities Act”) or any securities regulator in any state or jurisdiction of the United States, and may not be or subject to registration requirements under the Securities Act and the securities laws of any state or other country, or subject to any transaction, directly or indirectly in the United States to offer, sell or Assignment of U.S. Jurisdiction.

*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 financial guarantees and joint guarantees from its subsidiary Assured Guaranty Municipal Corp. (AGM). Both AGUK and AGM are subsidiaries of Assured Guaranty Ltd. (AGL and its subsidiary, Assured Guaranty). Assured Guaranty, through its subsidiaries, provides credit enhancement products and asset management services to U.S. and international public finance, infrastructure and structured finance markets. AGL is a public company (NYSE: AGO) headquartered in Bermuda. For more information on AGL and its subsidiaries, visit AssuredGuaranty.com.

Cautionary Statement Regarding Forward-Looking Statements:

Any forward-looking statements in this press release reflect Assured Guaranty’s current views regarding future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially from those stated in these statements. These risks and uncertainties include, but are not limited to, risks and uncertainties arising from Assured Guaranty’s inability to execute its strategy; the need for Assured Guaranty’s financial guarantees, including the DSR guarantee; the continued availability of the DSR guarantee; the relative advantages of DSR guarantees and bank financing; possible actions by rating agencies regarding Assured Guaranty’s financial strength rating; adverse developments in Assured Guaranty’s guaranteed portfolio; and other risks and uncertainties not yet identified, management’s assessment of these factors reaction, 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 were made on March 28, 2022. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

View the source code version at businesswire.com: https://www.businesswire.com/news/home/20220327005038/en/

contact

Investor Relations:
Robert Tucker, +1 212-339-0861
Senior Managing Director, Investor Relations and Corporate Communications
rtucker@agltd.com

media:
Ashvita Durrani, +1 212-408-6042
Vice President of Corporate Communications
adurani@agltd.com

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