This week, Ambac Financial Group announced to have converted another $11.8 million in debt to 8.6 million shares of Ambac’s common stock. The common stock will be issued to holders of 9⅜% debentures due in August 2011.
Earlier on June 17, Ambac entered into an agreement with 9⅜% debenture holders to exchange $8.5 million in debt for 5.0 million Ambac’s common shares.
Subsequent to the conversion of debt to shares, outstanding common shares of the company totaled 302.0 million. At the end of first quarter of 2010, the company had 288.2 million outstanding common shares.
Ambac’s rigorous effort to lower its debt level is further established by this new conversion. Combining the earlier exchange announcement, the company converted $20.3 million worth of 9⅜% debentures, due August 2011, to 13.6 million shares of the company.
Previously, the company had commuted $16.4 billion of exposure to collateralized debt obligations of asset-backed securities and $1.4 billion non-collateralized debt obligations of asset-backed securities. In addition, it announced that it would commute certain other non-collateralized debt obligations of asset-backed securities with an exposure of $1.5 billion.（via zacks.com）
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