A group of investors that hold the bonds of Puerto Rico’s water utility have hired investment bank Greenhill & Co. to help negotiate terms for new financing, Bloomberg News reported yesterday. The investors have discussed a plan that would create new senior debt for the Puerto Rico Aqueduct & Sewer Authority that is given higher priority than other agency borrowings. The bondholders may use a partial debt restructuring as a condition for backing the deal. The investors are seeking to inject fresh capital into the struggling water utility, known by the Spanish acronym Prasa, because it failed to sell $750 million of bonds with an average interest rate of 10 percent in August and September. Read more.
The Senate Energy and Natural Resources Committee will hold a hearing on Thursday at 10 a.m. ET to receive testimony on Puerto Rico's economy, debt, and options for Congress moving forward. Read more.
For the latest news and analysis of Puerto Rico’s financial crisis, be sure to visit ABI’s “Puerto Rico in Distress” webpage.
