Puerto Rico bond repurchase cuts Ambac exposure

• The Puerto Rico Highways and Transportation Authority has cancelled its Transportation Revenue Refunding Bonds (Series N) issued in 2007 and insured by Ambac (NYSE:AMBC).
• The repurchase (at no cost to Ambac) eliminates $228.5M of net par exposure to HTA, equating to roughly $493M of lifetime principal and interest.
• Ambac interim CEO Nader Tavakoli: "We hope to continue working with Puerto Rico constructively."
• Source: Press Release