HAMILTON, Bermuda, August 24, 2015 /PRNewswire/ -- Syncora Holdings Ltd ("SHL" or the "Company") and its wholly owned subsidiaries Syncora Guarantee Inc. ("SGI") and Syncora Capital Assurance Inc. ("SCAI") announced today that, in furtherance of their strategic objectives, they obtained the approval of the New York Department of Financial Services and support of the requisite swap counterparties and surplus note holders for amendments to the Master Transaction Agreement ("MTA Amendment") and for entry into a new intercompany capital support agreement (the "Transaction").
During the course of 2015, management has been pursuing the Company's strategic plan as outlined in its financial statements and investor calls. The Transaction completes a key component of the Company's strategic plan and is expected to materially enhance the Company's financial and operating flexibility and position the Company and its subsidiaries to take additional future steps to manage key financial risks associated with liquidity and surplus at both SGI and SCAI.
The MTA Amendment, among other things, eliminates or modifies certain contractual constraints such as prohibitions on certain financings and other means of generating liquidity, reduces the requisite consenting percentages for future amendments from 75% to 50% and bifurcates voting between certain SGI-only matters and SCAI-only matters.
SGI and SCAI also executed a new intercompany capital support agreement under which SGI, under certain circumstances, will purchase up to $100 million of additional SCAI surplus notes to bolster SCAI's statutory surplus if SCAI experiences adverse development in its insured portfolio or other events reduce SCAI's surplus below $100 million.
A summary of the MTA Amendment, the terms of the intercompany capital support agreement and additional materials relating thereto that were previously only disclosed to third parties pursuant to non-disclosure agreements are all available on www.syncora.com.
About Syncora Holdings Ltd.
Syncora Holdings Ltd. (OTC: SYCRF) is a Bermuda-domiciled holding company. Syncora Guarantee Inc. and Syncora Capital Assurance Inc. are wholly owned subsidiaries of Syncora Holdings Ltd. Further information can be found on www.syncora.com.
Forward Looking Statements
This release contains statements about future results, plans and events that may constitute "forward-looking" statements. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "comfortable with," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control. These risks and uncertainties include, but are not limited to, the factors described in the Company's historical filings with the NYDFS, and in the Company's, Syncora Guarantee Inc.'s and Syncora Capital Assurance Inc.'s GAAP and statutory financial statements posted on its website at www.syncora.com. Readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date they are made. The Company 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.
Syncora Holdings Ltd.
SOURCE Syncora Holdings Ltd.