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Stockton, Calif. and Assured Guaranty agree bankruptcy exit deal

STOCKTON, Calif., Oct 3 (Reuters) - Stockton, California and bond insurer Assured Guaranty have reached an agreement to restructure more than $150 million of outstanding debt to help the city exit from bankruptcy, sources close to the deal said on Thursday.

Under the terms of the agreement, Assured will take possession of a city building and receive the revenue it generates to service about $35 million in outstanding bonds that Stockton had sold to acquire it.

Additionally, Assured has agreed to allow Stockton to make payments on about $120 million in outstanding pension obligation bonds until 2052 from their original 2038 term.