Printer Friendly

MBIA AND CAISSE DES DEPOTS FORM JOINT VENTURE TO OFFER TENDER OPTION BONDS

 MBIA AND CAISSE DES DEPOTS FORM JOINT VENTURE
 TO OFFER TENDER OPTION BONDS
 ARMONK, N.Y., Nov. 12 /PRNewswire/ -- MBIA Inc. (NYSE: MBI) and Caisse des Depots et Consignations announced today that they have established a joint venture to offer a tender option bond program. The program, called TOPSTAR, will be offered by a new, jointly-owned company, MBIA Investors Capital Corp., which will purchase long-term high quality municipal bonds, attach a tender option agreement and resell the securities as synthetic short-term instruments.
 The company will be managed by MBIA and CDC Capital Inc., a subsidiary of Caisse des Depots in New York. MBIA Inc. is the holding company of Municipal Bond Investors Assurance Corporation, the nation's leading insurer of municipal securities. Caisse des Depots is the largest non-bank financial institution in France and is wholly-owned by the French Republic.
 TOPSTAR will offer investors a short-term tax-exempt interest rate and the right to tender the security at par at specified intervals in time. The interest rate will be reset to reflect prevailing yields on investments of comparable term and quality at the beginning of each option period. TOPSTAR will be backed by a bank liquidity facility to protect investors in the unlikely event that securities tendered for redemption cannot be remarketed immediately. Two banks, Banque Nationale de Paris (BNP) and Banque Frangaise du Commerce Exterieur (BFCE), will be used in the program, each of which has the highest short-term credit ratings from both Moody's Investors Service, Inc., and Standard & Poor's Corporation. TOPSTAR securities will be individually rated based on the credit quality of the underlying bonds and the bank's short-term ratings.
 David H. Elliott, president and chief executive officer of MBIA Inc., said, "TOPSTAR was developed to meet the strong, growing demand for high quality short-term, tax-exempt securities by portfolio and money market fund managers. Consistent with MBIA's mission, TOPSTAR will enhance the efficiency of public finance by creating a new supply of short-term municipal securities for investors while expanding the market for long-term bonds."
 As a joint venture, MBIA Investors Capital Corp. will capitalize on the strong municipal market presence of MBIA and the risk management expertise of CDC Capital. MBIA's skills in municipal credit analysis will be used to select and surveil municipal bond issues purchased for the program. CDC Capital will provide expertise in trading, interest- rate risk management and securities operations.
 "We are very optimistic about the prospects for TOPSTAR. MBIA's premier reputation in the municipal market, coupled with CDC's experience in taking controlled risk positions in fixed income markets, ensures the success of the new venture," said Luc de Clapiers, president of CDC Capital Inc.
 CDC Capital's primary business is to invest in fixed income products on behalf of Caisse des Depots, and to take arbitrage positions in the United States and other key financial markets. Founded in 1816 by the French Government, Caisse des Depots manages over $300 billion in assets from individuals, institutions and governmental entities. The company is the chief underwriter of French securities and the largest provider of life insurance and retirement savings products in France. Caisse des Depots is rated Triple-A by both Moody's and Standard & Poor's.
 MBIA Inc., through its wholly owned subsidiary, MBIA Corporation, is a leading insurer of municipal bonds, including new issues and bonds traded in the secondary market. The company also guarantees high quality obligations offered by financial institutions and provides investment management services for school districts and municipalities. MBIA has a claims-paying rating of Triple-A by both Moody's and Standard & Poor's and municipal bonds insured by MBIA receive these ratings. MBIA Inc. common stock is listed on the New York Stock Exchange (symbol: MBI).
 -0- 11/12/92
 /CONTACT: Michael C. Ballinger of MBIA, 914-765-3893/
 (MBI) CO: MBIA Inc.; Caisse des Depots et Consignations ST: New York IN: INS SU: OFR


GK -- NY092 -- 0391 11/12/92 16:50 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 12, 1992
Words:645
Previous Article:SUBARU-MONTGOMERY, AMERICA'S PREMIER CYCLING TEAM, TO CHALLENGE WORLD'S TOP CYCLISTS; SETS SIGHTS ON TOUR DE FRANCE AND WORLD CUP
Next Article:ARMSTRONG WORLD INDUSTRIES ISSUES ANNOUNCEMENT
Topics:


Related Articles
TRANSMEDIA EUROPE, INC. ('TMNE')/TRANSMEDIA ASIA PACIFIC, INC. ('TMNA'): MME PLOIX JOINS BOARD
MBIA 'AAA' CPA Rating Affirmed By Fitch -- Fitch Financial Wire --
Telefonica Wins Second Mobile Telephone License in Morocco.
The United Mexican States Announces Offer to Exchange.
Mexico Announces Pricing Information for Its Exchange Offer.
Mexico Announces Pricing Information for Its Exchange Offer.
CNP Assurances: Annual General Meeting of 25 April 2007.
CNP Assurances and Malakoff Mederic in Talks to set up new Pensions Business.
New Mediterranean fund goes live.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters