Bloomberg News

MBIA Completes Bond Changes to Protect It From Toxic Subsidiary

November 26, 2012

MBIA Inc. (MBI:US) said a majority of investors holding almost $900 million of bonds approved changes to terms governing the debt that will allow the company to shield itself from being dragged into bankruptcy by a cash- strapped unit.

Bondholders approved changes to indentures that accelerate payments under a cross-default provision, replacing its MBIA Insurance Corp. with the more stable National Public Finance Corp. The Armonk, New York-based insurer said it repurchased about $170 million of 5.7 percent bonds due in December 2034 that Bank of America Corp. (BAC:US) had offered to buy from bondholders in an effort to block the changes.

To contact the editor responsible for this story: Shannon D. Harrington at

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Companies Mentioned

  • MBI
    (MBIA Inc)
    • $8.82 USD
    • 0.02
    • 0.23%
  • BAC
    (Bank of America Corp)
    • $15.73 USD
    • -0.36
    • -2.29%
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