Ambac Assurance Corp. paid out $10.3 million to cover an insured portion of the $36 million that the Puerto Rico Infrastructure Finance Authority defaulted on Monday.
A spokesperson confirmed the payout Tuesday.
Ambac has net par exposure of $503 million to the PRIFA rum tax bonds, according to "Ambac: Puerto Rico Exposure," a document on its web site dated Nov. 20, 2015.
It also has exposures to other Puerto Rico public sector issuers that are now drawing on their debt service reserves to make payments. These are Puerto Rico Highways and Transportation Revenue 1968 Resolution at $26 million, PRHTA 1998 Resolution at $445 million, and convention center (hotel occupancy tax) of $137 million.
Ambac has a total Puerto Rico net par exposure of $2.16 billion. Puerto Rico's public sector issuers only had interest due on Monday, according to JPMorgan, and thus Monday's payout didn't change Ambac's net par exposure.
In other Ambac news, Ambac Financial Group announced Monday that Nader Tavakoli had been appointed president and chief operating officer of Ambac Financial. Ambac Financial is a holding company that included Ambac Assurance as a subsidiary.
On Dec. 29 Ambac and the Financial Guaranty Insurance Co. delivered a letter to Puerto Rico officials saying that their plan to default on the PRIFA bond payment was illegal.
