Puerto Rico Plotting Bond-Market Return After Its Record Default
- Water agency looking to raise $900 million in debt sale
- ‘The market is tough at this moment,’ finance official says
Puerto Rico Governor 'Open' to Creditor Talks
Puerto Rico just defaulted on about $1 billion due to bondholders, has declared its debts too crushing to pay and is about to undergo an unprecedented financial takeover by the U.S. government. So what’s next on the agenda? Finding investors willing to lend it $900 million.
The Puerto Rico Aqueduct & Sewer Authority wants to issue the debt through a new agency to finance construction work delayed by the government’s fiscal crisis. As an inducement to skeptics, the agency would give investors first claim on revenue it collects from water and sewer bills, according to Efrain Acosta, the director of finance for the utility. It may also exchange an additional $1.1 billion of securities for its outstanding bonds to investors willing to accept less than they’re owed.