MBIA INC : Other Events (form 8-K)

Published: 2022-01-13 06:07:05 ET MBI

Item 8.01 Other Events.

On January 12, 2022, National sold certain bankruptcy claims in a private transaction through the transfer of ownership of $231 million face amount of bonds, representing approximately 22% of the principal amount of the current bond claims in the PREPA Title III case. The bonds included in this transaction had been fully satisfied by National's insurance claim payments. This transaction monetizes a portion of National's salvage asset at a discount to National's previous carrying value, and reduces potential volatility and ongoing risk of remediation around the PREPA credit. National completed a similar transaction in October of 2021 through the transfer of ownership of $199 million face amount of bonds. Subsequent to the sale of these PREPA bankruptcy claims National does not have a material amount of additional par claims to PREPA that have matured and can be sold.

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