Bermuda bond insurer Assured Guaranty Ltd. last night announced that the underwriters of its previously announced common share and equity unit offerings have exercised their overallotment options in full.

The company is in the process of raising $550 million to finance its acquisition of rival Financial Security Assurance Holdings Ltd. In the common share offering the underwriters have exercised their overallotment option to purchase an additional 5.775 million common shares, bringing the total number of common shares to be sold by Assured to 44.275 million shares, or around $487.0 million in the aggregate. The additional common shares will be sold at the same $11 public offering price as the original common shares.

In the equity unit offering the underwriters have exercised their overallotment option to purchase an additional 450,000 equity units, bringing the total number of equity units to be sold by Assured to 3.45 million or approximately $172.5 million in the aggregate.

The additional equity units will be sold at the same $50 public offering price, and have the same terms, as the original equity units.

Assured intends to use the net proceeds from the exercise of the overallotment options, approximately $82.5 million, for general corporate purposes. The acquisition of FSAis expected to close on July 1, 2009.