Form 4: Ambac CEO LeBlanc Boosts Stake After Change of Control

Ambac Financial Group CEO Claude LeBlanc increased his direct beneficial ownership of common stock following the vesting of equity awards triggered by a change of control and an open market purchase.

Summary

• Ambac Financial Group CEO Claude LeBlanc's Deferred Share Units (DSUs) and Performance Stock Units (PSUs) vested and settled due to a change of control.
• The change of control was triggered by the sale of Ambac Assurance Corporation by Ambac Financial Group to an entity owned by funds managed by Oaktree Capital Management, L.P.
• LeBlanc acquired 661,355 shares of common stock from the conversion of DSUs on September 29, 2025, at a price of $0.
• An additional 193,353 shares of common stock were acquired on September 30, 2025, from the accelerated vesting and settlement of 2023 and 2024 PSU awards, also at a price of $0.
• The company withheld 350,188 shares of common stock at $9.72 on September 29, 2025, to satisfy tax withholding obligations related to the DSU conversion.
• Another 111,034 shares of common stock were withheld at $8.34 on September 30, 2025, for tax obligations related to the PSU conversion.
• LeBlanc made an open market purchase of 25,000 shares of common stock at $8.54 per share on October 1, 2025.
• 174,961 PSUs were converted into an equivalent number of DSUs on September 30, 2025, under the Company's Executive Stock Deferral Plan.
• Following these transactions, LeBlanc's direct beneficial ownership of Ambac Financial Group common stock increased to 1,021,777 shares.

Sentiment

Score: 7

Explanation: The CEO's increased beneficial ownership, including an open market purchase, indicates confidence in the company's future. The vesting of equity awards is a standard event following a change of control.

Positives

• The CEO's direct beneficial ownership of common stock increased to 1,021,777 shares, signaling confidence in the company's future.
• An open market purchase of 25,000 shares by the CEO further demonstrates management's belief in the company's value.
• The vesting of equity awards (DSUs and PSUs) indicates the fulfillment of performance conditions or tenure requirements, which is a positive for executive compensation.

Negatives

• A significant number of shares (350,188 and 111,034) were withheld by the company to cover tax withholding obligations, reducing the net shares received by the CEO from his equity awards.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders may view the increased insider ownership, particularly the open market purchase by the CEO, as a positive signal of management's confidence in the company's prospects.

Key Dates

Recommendation

The CEO's increased beneficial ownership, including an open market purchase, suggests confidence in the company's future following the change of control. However, a Form 4 primarily reports transactions and does not provide sufficient financial or strategic details to warrant a 'buy' or 'sell' recommendation without further analysis of the company's fundamentals and the implications of the Ambac Assurance Corporation sale.

Keywords

Ambac Financial Group, AMBC, Claude LeBlanc, Form 4, Insider Transaction, Beneficial Ownership, Equity Awards, DSU, PSU, Change of Control, Oaktree Capital Management