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Puerto Rico Debt Gains After Bondholders Reject Governor's Offer

  • Commonwealth may get $295 million in Medicaid funding
  • Prices on GO bonds are below island’s best-case 77-cent offer

Puerto Rico debt rose after bondholders rejected Governor Ricardo Rossello’s debt-restructuring proposal, inching the island closer to a potential courtroom workout to slash the $70 billion it owes.

The island’s general obligations maturing in 2041 changed hands Monday at an average 60.8 cents on the dollar in trades of at least $1 million, up from 59.7 on April 25, according to data compiled by Bloomberg. Those with an 8 percent coupon that are due in 2035, one of the most-actively traded Puerto Rico bonds, changed hands Monday at an average 63.9 cents, up from 63.6 cents on Friday.