Puerto Rico Creditors Said to Hire Greenhill for Water Deal

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 a new financing, according to two people with knowledge of the matter.

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, said the people, who asked not to be named because the information is private. The bondholders may use a partial debt restructuring as a condition for backing the deal, the people said.