National Takes Action to Extend PREPA Restructuring Support Agreement
Title III Bankruptcy Filing Unnecessary and Improper and Puts Commonwealth at Risk; PREPA RSA has
Broad Creditor Support
National to Continue Pursuing Lawsuit to Compel Oversight Board to Comply with Obligations Under
PROMESA
National Public Finance Guarantee Corporation (National), an indirect subsidiary of MBIA Inc. (NYSE:MBI), today announced that
it and the other supporting creditors offered the Puerto Rico Electric Power Authority (“PREPA”) an extension of the Restructuring
Support Agreement (“RSA”) until June 30, 2017 that included a re-lending that would have allowed PREPA to avoid a default on July
1, 2017. The offer was delivered to Puerto Rico Governor Ricardo Rosselló, PREPA and the Puerto Rico Fiscal Agency & Financial
Advisory Authority (”AAFAF”), but all have refused to sign the extension.
National believes this extension and the related funding would have provided additional time for discussions to avoid a Title
III bankruptcy filing by PREPA, which National also believes is unnecessary and improper and would put the Commonwealth at risk by
disrupting the provision of electricity on the island.
“PREPA and the Rosselló administration have rejected the only lifeline available on the island,” said Bill Fallon, CEO of
National Public Finance Guarantee Corporation. “They are bending to the will of the Oversight Board. The RSA has broad creditor
support and has been approved by all required parties, including two governors, the Puerto Rico legislature, AAFAF, the Puerto Rico
Energy Commission and the PREPA board. The Governor should stand by his agreement that we achieved almost two months ago.”
National will continue to pursue its lawsuit in the U.S. District Court for the District of Puerto Rico that seeks to compel the
Oversight Board to comply with its obligations under the Puerto Rico Oversight, Management, and Economic Stability Act.
National has adequate resources, with claims-paying resources totaling $4.6 billion at March 31, 2017, to ensure that its
policyholders will receive the full amount of the scheduled interest and principal payments that come due on their National insured
bonds.
Forward-Looking Statements
This release includes statements that are not historical or current facts and are “forward-looking statements” made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “believe,” “anticipate,” “project,”
“plan,” “expect,” “estimate,” “intend,” “will likely result,” “looking forward” or “will continue,” and similar expressions
identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual
results to differ materially from historical earnings and those presently anticipated or projected, including, among other factors,
the possibility that MBIA Inc. or National will experience increased credit losses or impairments on public finance obligations
issued by state, local and territorial governments and finance authorities that are experiencing unprecedented fiscal stress; the
possibility that loss reserve estimates are not adequate to cover potential claims; MBIA Inc.’s or National’s ability to fully
implement their strategic plan; and changes in general economic and competitive conditions. These and other factors that could
affect financial performance or could cause actual results to differ materially from estimates contained in or underlying MBIA
Inc.’s or National’s forward-looking statements are discussed under the “Risk Factors” section in MBIA Inc.’s most recent Annual
Report on Form 10-K, which may be updated or amended in MBIA Inc.’s subsequent filings with the Securities and Exchange Commission.
MBIA Inc. and National caution readers not to place undue reliance on any such forward-looking statements, which speak only to
their respective dates. National and MBIA Inc. undertake no obligation to publicly correct or update any forward-looking statement
if it later becomes aware that such result is not likely to be achieved.
National Public Finance Guarantee Corporation, headquartered in Purchase, New York is the world’s largest U.S. public
finance-only financial guarantee insurance company, with offices in New York and San Francisco. Please visit National’s website
at www.nationalpfg.com.
National Public Finance Guarantee Corporation
Media:
Greg Diamond, 914-765-3190
or
Fixed-Income Investor Relations:
Kevin Brown, 914-765-3385
or
MBIA Inc.
Investor and Media Relations:
Greg Diamond, 914-765-3190
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