trending Market Intelligence /marketintelligence/en/news-insights/trending/hseDkh_XIhVsCLB126prng2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

Puerto Rico bank reaches restructuring framework with bondholder group

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

StreetTalk – Episode 70: Banks' Liquidity Conundrum Could Fuel M&A Activity


Puerto Rico bank reaches restructuring framework with bondholder group

The Government Development Bank for Puerto Rico hasnegotiated a framework of indicative terms for a restructuring of its bondswith a group of bondholders holding approximately $900 million of outstandingnotes.

The key terms contemplate a two-step restructuring in whichall holders of old notes would first exchange their current holdings for newinterim notes, to be followed by an exchange of those interim notes as part ofa future global restructuring of Puerto Rico's debt. As part of the agreed keyeconomic terms, creditors accepted a haircut of 43.75% of the face amount oftheir old notes in the first-step exchange. Also as part of the transaction,bondholders would agree to the proposed treatment for their notes, in a secondstep exchange as part of a global restructuring that would result in an agreedhaircut of 53% of the face amount of their old notes.

The proposed terms of the interim exchange require 100%participation by all bondholders, including, in addition to the bondholdergroup, the state-chartered credit unions in Puerto Rico and other largeinstitutional groups.