Syncora Extends Deadline Yet Again

The fund purchasing residential mortgage-backed securities insured by Syncora Guarantee Inc. extended the deadline for tendering the securities once again yesterday, moving it to 11:59 p.m. June 19.

The deal is one part of Syncora’s plan to restructure its structured finance exposures to remedy its $2.4 billion policyholders’ surplus. The company last month executed an agreement with 25 financial counterparties to commute or restructure $56 billion in credit default swap exposure.

Syncora’s needs to complete both deals to fix its deficit. The New York Insurance Department had said the deal with counterparties represented “significant progress” and that regulators would continue to evaluate the results of the tender offer.

Tenders for securities totaling 40.7 remediation points had been received as of June 5. Syncora needs securities totaling 72 remediation points to be tendered to complete the deal.

Syncora will provide financing of up to $375 million for the deal, including transaction fees and costs. The BCP Voyager Master Funds SPC Ltd., acting on behalf of and for the account of the Distressed Opportunities Master Segregated Portfolio, will buy the securities.

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