by Calculated Risk on 1/16/2008 08:27:00 AM

PR from Ambac: Ambac Announces Capital Enhancement Plan to Raise in Excess of $1 Billion

Ambac Financial Group ... today announced ... the issuance of at least $1 billion of equity and equity-linked securities. ... By raising at least $1 billion in capital, Ambac is expected to meet or exceed Fitch Ratings’ current triple-A capital requirements for the Company. ... As part of its capital initiative, Ambac also said that it will reduce the quarterly dividend on its common stock from $0.21 per share to $0.07 per share.
...
Ambac’s estimate of the fair value or “mark-to-market” adjustment for its credit derivative portfolio for the quarter ended December 31, 2007 amounted to an estimated loss of $5.4 billion, pre-tax, $3.5 billion, after tax.