Reinsurance / April 7, 2025

Ambac meets pre-closing conditions for $420m sale to Oaktree

Ambac Financial Group, Inc., an insurance holding company, has announced that it has met all necessary pre-closing conditions under the purchase agreement for the sale of Ambac Assurance Corporation (AAC) and Ambac UK (AUK) to funds managed by Oaktree Capital Management, L.P.

The transaction was first announced in June 2024, when Ambac signed a definitive agreement to sell the businesses to Oaktree for $420 million in cash. As part of the deal, Oaktree will also receive warrants to acquire up to 9.9% of Ambac’s common stock at a strike price of $18.50.

Oaktree is continuing to pursue the final outstanding regulatory approval, which is expected in the second quarter. In line with the terms of the agreement, the purchase agreement term has been automatically extended from April 4, 2025, to July 3, 2025.

Claude LeBlanc, President and CEO of Ambac, said, “The regulatory review process between Oaktree and the regulator continues to progress.

“Ambac is prepared to close the sale as soon as possible upon receipt of the final outstanding regulatory approval.”