Ambac and Oaktree extend stock purchase agreement for financial guarantee business

Octave Specialty Group announced the extension from July 3, 2025, to December 31, 2025 of the term of the stock purchase agreement relating to the sale of its legacy financial guarantee businesses—Ambac Assurance Corporation and Ambac UK—to funds managed by Oaktree Capital Management for $420 million in cash.

Both Ambac and Oaktree remain fully committed to closing the transaction. Oaktree continues to work with the Wisconsin Office of the Commissioner of Insurance to satisfy its remaining closing conditions and obtain final regulatory approval.

In addition to the extension, Ambac and Oaktree have agreed to a conversion right for the warrant to purchase Ambac common stock that Oaktree is receiving at the closing of the transaction. Ambac and Oaktree have also agreed to arrangements with respect to Ambac’s existing lease obligations and on the treatment of certain expenses allocated to AAC prior to the closing of the transaction.

“We continue to await final regulatory approval for this strategic transaction and remain aligned with Oaktree and confident in completing the sale. 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.” – Claude LeBlanc, President and CEO of Ambac.

“Oaktree has been actively working towards, and is committed to, obtaining the final regulatory approval from the OCI to close on the acquisition of AAC and AUK. We look forward to closing this transaction once such approval is received.” – Oaktree Managing Director Greg Share.