Puerto Rico Increases Bond Offering by 17% to $3.5 Billion
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Puerto Rico, which had its debt cut to junk last month, set prices on $3.5 billion of general obligations after boosting the deal by $500 million as orders eclipsed the amount of securities offered. The bonds gained in initial trading.
The tax-exempt debt matures in July 2035 and priced at 93 cents on the dollar, to yield about 8.73 percent, data compiled by Bloomberg show. It traded at about 96 cents on average to yield 8.4 percent as of 3 p.m. in New York. The self-governing U.S. commonwealth will use the proceeds to balance budgets and refinance debt as it buys time to revive a shrinking economy.