Stewart Information Services Corporation Announces Redemption of Auction Rate Securities
HOUSTON, June 23, 2010 -Stewart Information Services Corporation (NYSE: STC) is pleased to announce that on June 30, 2010, it expects to surrender to the lender all of its pledged auction rate securities (ARS) in full satisfaction of the remaining $106 million on a line of credit with the lender, all of which was subject to a prior settlement agreement.
Pursuant to the settlement agreement, Stewart pledged ARS in connection with a line of credit in the full amount of the original purchase price of the ARS. As the ARS are surrendered, the asset and offsetting liability on Stewart's balance sheet will be eliminated.
Of the approximately $240 million in ARS which were the subject of the settlement agreement, $134 million have previously been redeemed. Stewart has been advised by the lender that the remaining $106 million of ARS outstanding on Stewart's balance sheet will be redeemed in full on June 30, 2010.
Stewart Information Services Corporation (NYSE-STC) is a customer-driven technology-enabled, strategically competitive real estate information, title insurance and transaction management company. Stewart provides title insurance and related information services required for settlement by the real estate and mortgage industries throughout the United States and in international markets. Stewart also provides post-closing lender services, automated county clerk land records, property ownership mapping, geographic information systems, property information reports, flood certificates, document preparation, background checks and expertise in tax-deferred exchanges. More information can be found at www.stewart.com.
Forward-looking statements. Certain statements in this news release are " forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future, not past, events and often address our expected future business and financial performance. These statements often contain words such as "expect," "anticipate, " "intend," "plan," "believe," "seek," "will" or other similar words. Forward- looking statements by their nature are subject to various risks and uncertainties that could cause our actual results to be materially different than those expressed in the forward-looking statements. These risks and uncertainties include, among other things, the complete and timely redemption of the ARS as discussed herein, the severity and duration of current financial and economic conditions; continued weakness or further adverse changes in the level of real estate activity; changes in mortgage interest rates, existing and new home sales, and availability of mortgage financing; our ability to respond to and implement technology changes, including the completion of the implementation of our enterprise systems; the impact of unanticipated title losses on the need to further strengthen our policy loss reserves; any effect of title losses on our cash flows and financial condition; the impact of our increased diligence and inspections in our agency operations; changes to the participants in the secondary mortgage market and the rate of refinancings that affect the demand for title insurance products; regulatory non-compliance, fraud or defalcations by our title insurance agents or employees; our ability to timely and cost- effectively respond to significant industry changes and introduce new products and services; the impact of changes in governmental and insurance regulations, including any future reductions in the pricing of title insurance products and services; our dependence on our operating subsidiaries as a source of cash flow; the continued realization of expected expense savings resulting from our expense reduction steps taken since 2008; our ability to access the equity and debt financing markets when and if needed; our ability to grow our international operations; and our ability to respond to the actions of our competitors. These risks and uncertainties, as well as others, are discussed in more detail in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2009 and our Current Reports on Form 8-K. We expressly disclaim any obligation to update any forward- looking statements contained in this news release to reflect events or circumstances that may arise after the date hereof, except as may be required by applicable law.