Return to Perspectives
Defining Matters
Jan. 10, 2017

Kramer Levin Represents Purchasers of $328.25 Million of Senior Secured Notes Issued by an Affiliate of MBIA Insurance Corp.

Kramer Levin represents the purchasers of $328.25 million aggregate principal amount of 14% Senior Secured Notes due 2020, issued by MZ Funding LLC, a special purpose entity affiliate of MBIA Insurance Corp. (“MBIA Corp.”). The proceeds of the notes will be loaned to MBIA Corp. to pay insurance claims on its policy insuring notes issued by the Zohar II collateralized loan obligation, which are set to mature in January 2017. As part of the transaction, MBIA Inc., the parent company of MBIA Corp., provided incremental funding with the purchase of $38 million of 14% Subordinated Secured Notes due 2020 issued by MZ Funding LLC, with a commitment to purchase an additional $50 million of 14% Subordinated Secured Notes if MBIA Corp. needs additional liquidity. In addition, MBIA Corp. issued financial guaranty insurance policies covering interest and principal on both notes issuances.

Related People

Related Practices

We use cookies on this website to optimize user experience and site functionality and to give you the best possible experience. We do so with your approval. The choice is up to you. Learn more.