Sector developments and company hires

Syncora sale
GoldenTree Asset Management entity Star Insurance Holdings is set to acquire Syncora Holdings’ New York financial guarantee insurance subsidiary Syncora Guarantee (SGI) for US$392.5m in cash, subject to adjustment. The cash purchase price for SGI represents a premium to the closing share price of Syncora’s common stock on 1 March 2019, the trading day prior to the announcement of the strategic review process. In addition to the cash purchase price, after the closing of the sale, Syncora will have cash in the amount of US$32m and specified non-core assets currently held at SGI, including certain non-cash assets of Pike Pointe Holdings and an 80% interest in Swap Financial Group. The closing is expected to take place by end-4Q19 or during 1Q20. Syncora - working with its financial advisor Moelis & Company and its US legal advisor Debevoise & Plimpton - commenced a formal review process to explore and evaluate strategic alternatives, which included the sale of Syncora or SGI. The process included solicitations of interest from dozens of potential acquirers, executed non-disclosure agreements with 20 potential acquirers and bids from five interested parties.

Manager transfer
Dock Street Capital Management has been appointed replacement collateral manager to House of Europe Funding III. Under the provisions of an amendment to the collateral management agreement, Dock Street agrees to assume all the duties and obligations of the previous collateral manager Hypo Real Estate Bank. Moody’s confirms that the move will not impact the ABS CDO’s ratings. For more CDO manager transfers, see SCI’s database.