MBIA Inc. (NYSE:MBI) today announced that year-to-date, it has
facilitated the conversion of over $1 billion in outstanding par value
of short-term variable rate securities into long-term fixed rate bonds
at no additional cost for insurance to issuers. The issuers include
Miami-Dade International Airport, George Washington University, South
Central Connecticut Water, St. Joseph’s
Healthcare and most recently Dallas-Fort Worth Airport. In addition,
MBIA continues to successfully work with other issuers who have
outstanding auction rate securities to help them access
intermediate-term funding, purchase their own securities and convert
transactions to variable rate demand notes to lower the cost of funding.
MBIA has a dedicated team that has been working with the financial
community since the beginning of the year to provide a solution for the
illiquid trading value of auction rate and other short-term securities.
The team receives new proposals almost daily and has developed an
efficient, streamed-line approval process. Currently, MBIA has over 50
additional transactions under review.
Public Finance Division Managing Director Tim McKeon said, “We
are working closely with issuers and their advisers to address liquidity
concerns and achieve the most efficient cost of funding available.
Converting short-term variable rate transactions into long-term fixed
rate bonds has been well received. The obligations have been re-issued
with the MBIA insurance still in place to a new group of long-term
investors who have an appetite for MBIA-insured bonds without incurring
additional costs for insurance to issuers.
“We also recently completed the initial
remarketing of the Series 2007A Bonds for Sarasota County Public
Hospital District from auction rate securities to variable rate demand
notes (VRDNs) with insured liquidity at a rate reset at 1.50%. This
compares favorably to its latest weekly auction reset of 7.47%. The
resultant savings of 5.97% in the current market to the Hospital
District equals approximately $13,500 per day. While there are no
guarantees of future interest rates, the immediate savings for the
Hospital District is significant,” said Mr.
McKeon.
This release contains statements about future results that may
constitute "forward-looking statements" within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. Readers are cautioned that these statements are not guarantees of
future performance. There are a variety of factors, many of which are
beyond MBIA's control, which affect the operations, performance,
business strategy and results and could cause its actual results to
differ materially from the expectations and objectives expressed in any
forward-looking statements. Accordingly, readers are cautioned not to
place undue reliance on forward-looking statements which speak only as
of the date they are made. MBIA does not undertake to update
forward-looking statements to reflect the impact of circumstances or
events that arise after the date the forward-looking statements are
made. The reader should, however, consult any further disclosures MBIA
may make in its future filings of its reports on Form 10-K, Form 10-Q
and Form 8-K.
MBIA Inc., through its subsidiaries, is a leading financial guarantor
and provider of specialized financial services. MBIA's innovative and
cost-effective products and services meet the credit enhancement,
financial and investment needs of its public and private sector clients,
domestically and internationally. MBIA Inc.'s principal operating
subsidiary, MBIA Insurance Corporation, has the following financial
strength ratings: Triple-A with negative outlook from Standard & Poor's
Ratings Services and Triple-A with negative outlook from Moody's
Investors Service. Please visit MBIA's Web site at www.mbia.com.
MBIA, Media:
Willard Hill, 914-765-3860
or
MBIA,
Media:
Elizabeth James, 914-765-3889
or
APCO
Worldwide, Media:
Jim McCarthy, 202-333-8810
