Assured Guaranty Statement Regarding Brightline Florida Financial Restructuring

Payment obligations on AG-insured OpCo senior bonds remain unchanged despite the bankruptcy filings of other Brightline Florida entities.

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NEW YORK--(BUSINESS WIRE)-- Assured Guaranty Inc. (AG), a subsidiary of Assured Guaranty Ltd. (NYSE: AGO) (together with its subsidiaries, Assured Guaranty), today issued the following statement regarding the financial restructuring of Brightline Florida Holdings LLC and its affiliates (collectively, Brightline Florida) and the Chapter 11 filing of certain Brightline Florida entities.

Brightline Trains Florida LLC (OpCo), the obligor with respect to the tax-exempt senior bonds insured by AG, has not filed for Chapter 11 protection. The Chapter 11 bankruptcy filings of certain other Brightline Florida entities do not alter any of the payment obligations to such AG-insured OpCo senior bonds.

In connection with the restructuring, which is subject to the bankruptcy court’s review and approval, certain Brightline Florida financial stakeholders, including AG, have entered into a restructuring support agreement. The restructuring support agreement will provide OpCo, following the Brightline Florida entities’ exit from bankruptcy, $490 million of new capital, consisting of $350 million of new junior debt and $140 million of additional senior debt. This additional senior debt will be pari passu with OpCo’s existing senior debt. Of the total $490 million of new capital, AG has committed to provide $70 million of the additional OpCo senior debt. This new capital will be used to support Brightline Florida’s ongoing operations and help position it for long-term stability and success, in addition to repaying the post-petition financing described below.

Certain Brightline Florida financial stakeholders, including AG, have also agreed to provide OpCo $258 million of post-petition funding during the pendency of Brightline Florida entities’ bankruptcy process, which funding will be pari passu with the existing OpCo senior debt. AG has agreed to provide up to $178 million of that funding. This funding will be repaid upon the exit of such Brightline Florida entities from the bankruptcy process. Separately, OpCo and specific bondholders have agreed to a limited deferral of scheduled interest payments on its uninsured and insured senior bonds held by such bondholders in exchange for a fee paid by OpCo; OpCo will offer the same interest deferral option to all senior bondholders. With respect to insured bonds, AG will guarantee the timely payment of the deferred interest when due under the deferral for those bondholders electing to defer, and will continue to guarantee the timely payment of interest as originally scheduled for those bondholders not electing to defer.

AG insures a majority, slightly over 50%, of OpCo’s existing senior tax-exempt bonds, and consequently, AG holds the majority debt voting position and will exercise its corresponding control rights.

AG maintains significant financial strength and substantial claims-paying resources. It has a demonstrated history of managing complex credit situations, mitigating potential losses and defending its contractual and legal rights.

Rating agency actions in July and August 2026 by S&P Global Ratings, KBRA and Moody’s all affirmed AG’s financial strength ratings with stable outlooks, reflecting, among other factors, AG’s capital strength, liquidity, competitive position and disciplined underwriting approach.

AG’s commitment to insured bondholders remains unwavering, while it continues to focus on protecting its rights, mitigating potential losses and working toward outcomes that support the interests of the parties involved.

About Assured Guaranty

Assured Guaranty Inc. is a subsidiary 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, 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 certain of its investment management affiliates, and in the annuity reinsurance business through Assured Life Reinsurance Ltd. More information on Assured Guaranty Ltd. 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 harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are not historical facts, including statements that use words such as “anticipate,” “believe,” “expect,” “intend,” “plan,” “will” and similar expressions. 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, difficulties executing Assured Guaranty’s business strategy; the demand for Assured Guaranty’s financial guaranties; adverse developments in Assured Guaranty’s guaranteed portfolio; the risk that the restructuring is not approved by the bankruptcy court, or is approved on terms materially different from those described in this press release; the failure to satisfy any condition to, or the termination of, the restructuring support agreement; the risk that the new capital or the post-petition funding is not provided when anticipated or at all; the possibility that Assured Guaranty’s ultimate losses or recoveries in respect of its Brightline Florida exposure differ materially from current expectations; actions that the rating agencies may take at any time with respect to any of Assured Guaranty’s financial strength ratings, and/or of any securities Assured Guaranty issued and/or of transactions that Assured Guaranty insured; other risks and uncertainties that have not been identified at this time; management’s response to these factors; and other risk factors identified in Assured Guaranty’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 September 25, 2026. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260924260072/en/

Investor Relations:
Robert Tucker, +1 212-339-0861
Senior Managing Director, Investor Relations and Corporate Communications
rtucker@agltd.com

Media:
Ashweeta Durani, +1 212-408-6042
Director, Corporate Communications
adurani@agltd.com

Source: Assured Guaranty Ltd.

Key Terms

chapter 11 regulatory

Chapter 11 is a U.S. bankruptcy process that lets a financially distressed company keep operating while it reorganizes its debts and business plan under court supervision. Think of it as a formal pause that allows the company to renegotiate payments, shed contracts or assets, and seek a path to profitability instead of being liquidated; investors watch it because it can change the value and priority of claims, equity dilution, or the likelihood of recovery.

restructuring support agreement financial

A restructuring support agreement is a written deal between a company and its key creditors or stakeholders that lays out how debts, contracts, or ownership will be changed to fix the company’s finances. It matters to investors because it reduces uncertainty by signaling a negotiated path to solvency or debt relief—like neighbors agreeing on a repayment plan—so it influences how much creditors and shareholders are likely to recover and how quickly the company can move forward.

pari passu financial

An instruction that different claims, securities, or creditors are treated equally and share rights or payments on the same priority level. For investors, it means their position will be paid or have voting power alongside others in the same class rather than being favored or subordinated—think of several people standing in one bus line who all get on together rather than some cutting ahead. That parity affects expected recovery in reorganizations, dividend order, and relative risk.

post-petition funding financial

Financing provided to a company after it has filed for bankruptcy protection, typically authorized by the bankruptcy court to keep operations running during the reorganization or sale process. Like a court-approved bridge loan, post-petition funding often gets special legal priority over earlier debts and affects how much cash is available to meet expenses and pay creditors, so it can materially change the likely recoveries for existing investors and lenders.