Ambac, Oaktree extend stock purchase agreement to December 31, 2025.

Ambac Financial Group and Oaktree Capital Management have extended the term of their stock purchase agreement for the Financial Guarantee business until December 31, 2025. The agreement is for the sale of legacy financial guarantee businesses, Ambac Assurance Corporation and Ambac UK, for $420 million in cash. Both parties remain committed to closing the transaction, pending final regulatory approval from the Wisconsin Office of the Commissioner of Insurance.

Ambac Financial Group, Inc. (NYSE: AMBC) and Oaktree Capital Management, L.P. have extended the term of their stock purchase agreement for the sale of Ambac's legacy financial guarantee businesses, Ambac Assurance Corporation (AAC) and Ambac UK (AUK), until December 31, 2025. The agreement, initially set to close on July 3, 2025, will now see the transaction finalized by the end of the year, pending final regulatory approval from the Wisconsin Office of the Commissioner of Insurance (OCI).

The sale, valued at $420 million in cash, is part of Ambac's strategic transformation into a pure-play specialty P&C insurance platform. Both Ambac and Oaktree remain fully committed to completing the transaction. Oaktree has been actively working with the OCI to satisfy the remaining closing conditions and obtain the necessary regulatory approval.

Claude LeBlanc, President and CEO of Ambac, stated, "We continue to await final regulatory approval for this strategic transaction and remain aligned with Oaktree and confident in completing the sale. This transaction remains the capstone to our transformation into a pure-play specialty P&C insurance platform, and we look forward to closing it as soon as practicable."

Greg Share, Managing Director of Oaktree, echoed the commitment, "Oaktree has been actively working towards, and is committed to, obtaining the final regulatory approval from the OCI to close on the acquisition of AAC and AUK. We look forward to closing this transaction once such approval is received."

In addition to the extension, Ambac and Oaktree have agreed to a conversion right for the warrant to purchase Ambac common stock that Oaktree is receiving at the closing of the transaction. They have also agreed to arrangements regarding Ambac’s existing lease obligations and the treatment of certain expenses allocated to AAC prior to the closing. Full details of the amendment will be disclosed in a Current Report on Form 8-K to be filed by Ambac with the SEC.

Ambac Financial Group, Inc. is an insurance holding company headquartered in New York City, with a core business in specialty P&C distribution and underwriting. Oaktree is a leading global investment manager specializing in alternative investments, with $203 billion in assets under management as of March 31, 2025.

The article is based on information from Ambac Financial Group, Inc. and Oaktree Capital Management, L.P. For more information, please visit Ambac's website at www.ambac.com and Oaktree's website at http://www.oaktreecapital.com/.

References:
[1] https://www.stocktitan.net/news/AMBC/ambac-financial-group-and-oaktree-announce-an-extension-to-the-stock-qlpymeny35kl.html
[2] https://www.marketscreener.com/quote/stock/AMBAC-FINANCIAL-GROUP-INC-13159219/news/Ambac-Financial-Group-and-Oaktree-announce-an-extension-to-the-stock-purchase-agreement-for-the-Fina-50447303/