Bondholders Disclose $3 Billion of Puerto Rico Electricity Debt

  • OppenheimerFunds holds $948.7 million of Prepa bonds
  • Bondholder pool is seeking a receiver to operate power utility

How Did Puerto Rico Go Bankrupt?

An ad hoc group of bondholders that manage $3 billion of Puerto Rico Electric Power Authority debt revealed in court documents how much of the utility’s bonds that each firm holds.

The release follows similar disclosures from bondholder groups owning Puerto Rico’s general obligations and its sales-tax debt and is part of the island’s bankruptcy process that began on May 3. The commonwealth is seeking to reduce $74 billion of debt sold by various agencies.

Prepa, as the power utility is known, filed for bankruptcy last month after a federal oversight board rejected a $9 billion restructuring deal between the agency, the ad hoc group of bondholders and insurance companies. Prepa is the island’s main supplier of electricity.

The amounts that each firm manages, as of July 19, are as follows:

  • OppenheimerFunds Inc.: $948.7 million of Prepa bonds, including $53.6 million of insured Prepa debt; $1.6 billion of general obligations, including $129 million of insured GOs; $1.96 billion of senior and junior sales-tax bonds, including $130.7 million of insured senior sales-tax debt; $390.3 million of Highways and Transportation Authority debt, including $141.2 million of insured Highways bonds
  • Franklin Advisers Inc.: $712.8 million of Prepa bonds, including $5 million of insured Prepa debt; $368.4 million of general obligations, including $73.6 million of insured GOs; $747.5 million of sales-tax bonds, including $693.7 million of junior sales-tax debt
  • Marathon Asset Management LP: $440.8 million of Prepa bonds and a $137.5 million term loan under a ScotiaBank fuel line credit facility
  • BlueMountain Capital Management LLC: $392.9 million of Prepa bonds and a $6 million long credit default swap maturing December 2020, a $3 million short credit default swap maturing June 2019 and a $12 million short credit default swap maturing June 2020
  • Angelo, Gordon & Co. LP: $321.9 million of Prepa bonds; $165,000 of general obligations
  • Knighthead Capital Management LLC: $235.8 million of Prepa debt; $3.8 million of Highways bonds
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