Ambac extends deadline for sale of financial guarantee businesses to Oaktree to December

By Mia MacGregor

July 7 - (The Insurer) - Ambac Financial Group has extended the term of the stock purchase agreement for the $420 million sale of its legacy financial guarantee businesses to Oaktree Capital Management from July 3, 2025, to December 31, 2025.

Ambac stated that both parties remain committed to finalising the deal, with Oaktree working alongside the Wisconsin Office of the Commissioner of Insurance to fulfil remaining conditions and secure regulatory approval.

The extension comes with additional agreements, including a conversion right for a warrant to purchase Ambac common stock, which Oaktree will receive at closing.

Ambac and Oaktree have also reached arrangements regarding Ambac’s lease obligations and expense allocations to Ambac Assurance Corporation prior to the transaction’s closure.

“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,” said Claude LeBlanc, president and CEO of Ambac.

Ambac announced in June that it had amended its $150 million credit facility with UBS, extending its maturity date to December 31, 2025 to ensure financial flexibility.

In April, Ambac announced that it had satisfied all required pre-closing conditions for the sale of Ambac Assurance Corporation and Ambac UK Limited and extended the deal timeline by three months, pending final regulatory approval.

The sale was approved by Ambac's shareholders in October 2024.