Puerto Rico Electric Said to Offer 7.15% Yield on 30-Year Bonds

Puerto Rico Electric Power Authority plans to sell $600 million of revenue debt tomorrow with an initial yield of 7.15 percent on 30-year securities, according to three people familiar with the sale who requested anonymity before the pricing is final.

The sale would be the first for a borrower from the commonwealth since November. The agency, which runs the largest U.S. public-power system, is rated one step above junk by Moody’s Investors Service.

The extra yield above benchmark debt on bonds maturing in July 2043 would be 2.58 percentage points, data compiled by Bloomberg show.

To contact the reporter on this story: Michelle Kaske in New York at mkaske@bloomberg.net

To contact the editor responsible for this story: William Glasgall at wglasgall@bloomberg.net

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