ACA To Receive $45 Million Of Additional Equity, Says Fitch

Business Wire, Jan 31, 2001

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 31, 2001

Fitch has reviewed a term sheet and a letter from the general counsel of American Capital Access Holdings, Inc. (ACA Holdings), the holding company of ACA Financial Guaranty Corp. (ACA), stating that ACA Holdings has received commitments for $45 million of addition equity and that the transaction has been approved by ACA Holdings' board of directors. These commitments come from certain existing ACA Holdings investors and two new investors. The additional equity will allow ACA to support its growth plans over the next several years and provide a cushion against the company falling below regulatory minimum capital requirements.

ACA Holdings expects to receive the new capital infusion during February and downstream the proceeds to ACA, at which time Fitch would remove ACA from Rating Watch Negative status and affirm its `A' insurer financial strength rating.