Assured Guaranty Wraps £140 million Fixed Rate Public Bond Issue for Heathrow Airport

Assured Guaranty UK Limited (AGUK)* announced that it has guaranteed principal and interest payments on £140 million of primary wrapped bonds issued by Heathrow Airport, the UK’s largest airport.

The wrapped bonds are long dated and issued by Heathrow Funding Limited, the airport’s issuer vehicle, via its multicurrency bond programme. There are two fixed rate tranches of wrapped bonds, a £70 million tranche due 2058 and a £70 million tranche due 2059.

The bonds have been placed in the UK institutional investor market. As a result of the financial guarantee provided by AGUK, the bonds are rated AA by S&P Global Ratings.

Suparna Dar, Managing Director, AGUK, commented:

"We are delighted to have worked alongside the Heathrow Airport team supporting the airport’s long term funding requirements by providing Assured Guaranty’s financial guarantee.

The closing of this transaction represents our first primary market transaction in the UK Airports sector, where we have been very active in the secondary market in recent years.

We guarantee a number of transactions for issuers in the airports sector globally, and believe our wrap provides a cost-effective solution to facilitate long-term financing for major airport borrowers.”

AGUK guarantees timely payment of scheduled principal and interest throughout the life of the bonds, in accordance with the terms of its financial guarantee.

Assured Guaranty’s legal adviser on the transaction was Allen & Overy LLP. Heathrow Airport was advised by Freshfields Bruckhaus Deringer LLP.

IMPORTANT NOTICE

All of the securities have been sold, and this announcement is for information 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 United States Securities Act of 1933, as amended ("Securities Act"), or with any securities regulatory authority of any state or jurisdiction of the United States, and may not be offered, sold or transferred, directly or indirectly, in the United States absent registration under the Securities Act or an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the securities laws of any state or other jurisdiction of the United States.

* 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 its financial guarantee together with a co-guarantee from its affiliate Assured Guaranty Municipal Corp. (AGM). Both AGUK and AGM are subsidiaries of Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty). Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and non-U.S. public finance (including infrastructure) and structured finance markets. Assured Guaranty also participates in the asset management business through its ownership interest in Sound Point Capital Management, LP and related entities. AGL is a publicly traded (NYSE: AGO) Bermuda-based holding company. More information on AGL and its subsidiaries can be found at AssuredGuaranty.com.

Cautionary Statement Regarding Forward-Looking Statements:

Any forward-looking statements made in this press release reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, those resulting from difficulties with the execution of Assured Guaranty’s business strategy; reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty’s insurance; rating agency action, including a ratings downgrade, a change in outlook, the placement of ratings on watch for downgrade, or a change in rating criteria, at any time, of AGL or any of its insurance subsidiaries, and/or of any securities AGL or any of its subsidiaries have issued, and/or of transactions that AGL’s insurance subsidiaries have insured; adverse developments in Assured Guaranty’s guaranteed portfolio; and other risks and uncertainties that have not been identified at this time, management’s response to these factors, 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 are made as of 17 November 2023. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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