---
schema_version: "secwatch.filing_event.v1"
accession: "0000874501-23-000002"
form_type: "8-K"
ticker: "OSG"
cik: "0000874501"
company_name: "OCTAVE SPECIALTY GROUP INC"
filed_at: "2023-01-03T23:59:59+00:00"
generated_at: "2026-06-20T21:09:33.049478+00:00"
event_type: "other_material"
sentiment: "positive"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# Ambac settles Nomura RMBS lawsuit for $140M; to fully redeem Tier 2 Notes

## Summary
- Settled 2013 RMBS litigation with Nomura; Nomura pays $140M cash, mutual release of claims.
- AAC previously applied $213M from Bank of America settlement in Oct 2022 to partially redeem Tier 2 Notes.
- Plans to use $140M from Nomura plus ~$5M to fully redeem remaining 8.5% Tier 2 Notes (~$145M including accrued interest).
- Full redemption completes paydown of the $240M original principal Tier 2 Notes issued in 2018.

## SEC filing metadata
- accession: 0000874501-23-000002
- form_type: 8-K
- ticker: OSG
- cik: 0000874501
- company_name: OCTAVE SPECIALTY GROUP INC
- filed_at: 2023-01-03T23:59:59+00:00
- event_type: other_material
- sentiment: positive
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 1.01, 2.04
- EDGAR index: https://www.sec.gov/Archives/edgar/data/874501/000087450123000002/0000874501-23-000002-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/874501/000087450123000002/ambc-20221229.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0000874501-23-000002
- JSON: https://secwatch.observer/filing/0000874501-23-000002.json
- Plain text: https://secwatch.observer/filing/0000874501-23-000002.txt

## Key facts
- Debt Financings
  OCTAVE SPECIALTY GROUP INC faced acceleration on senior notes of $240 million aggregate principal amount at 8.5% maturing due 2055.
  - Instrument: senior notes
  - Principal: $240 million aggregate principal amount
  - Rate: 8.5%
  - Maturity: due 2055
  - Event: acceleration
  source text: On February 12, 2018, AAC issued $240 million aggregate principal amount of 8.5% Senior PIK Notes due 2055 (the “Tier 2 Notes”) under an Indenture, dated as of February 12, 2018, by and between AAC and The Bank of New York Mellon, as trustee and as note collateral agent. The Tier 2 Notes are secured by proceeds from RMBS litigations net of reinsurance (“Net Proceeds”) in excess of $1.6 billion and are subject to mandatory redemption from Net Proceeds in excess of $1.6 billion within five business days after the receipt of such Net Proceeds. Effective October 29, 2022 AAC applied Net Proceeds of approximately $213 million (two hundred thirteen million dollars) from the Settlement Agreement and Release with Bank of America Corporation and certain affiliates thereof to redeem Tier 2 Notes plus accrued and unpaid interest as of the date of redemption. AAC plans to apply the Net Proceeds of $140 million (one hundred forty million dollars) from the Settlement Agreement with Nomura plus appro
  evidence_url: https://www.sec.gov/Archives/edgar/data/874501/000087450123000002/0000874501-23-000002-index.htm
- Material Agreements
  OCTAVE SPECIALTY GROUP INC entered into Settlement Agreement with Nomura Credit & Capital, Inc. valued at $140 million (effective 2022-12-29).
  - Action: entry
  - Agreement: settlement
  - Counterparty: Nomura Credit & Capital, Inc.
  - Value: $140 million
  - Effective: 2022-12-29
  source text: On December 29, 2022, Ambac Assurance Corporation ("AAC") entered into a Settlement Agreement and Release (the “Settlement Agreement”) with Nomura Credit & Capital, Inc. (“Nomura”) to settle its litigation against Nomura (Supreme Court of the State of New York, County of New York, Case No. 651359/2013, filed on April 15, 2013) concerning certain residential mortgage-backed securities (“RMBS”) trusts (the “Trusts”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/874501/000087450123000002/0000874501-23-000002-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.