Puerto Rico reaches key deal with power company bondholders

SAN JUAN, Puerto Rico — Puerto Rico's government has reached a key debt restructuring deal with a group that bought bonds issued by the U.S. territory's power company.

The deal announced Friday is expected to reduce some of Puerto Rico's Electric Power Authority debt by 33 percent as the company prepares to privatize the energy generation.

The deal also was reached with bond insurer Assured Guaranty Corp. and calls for a fixed transition charge of 2.7 cents per kilowatt hour that will rise to 4.5 cents. The increase would be reflected in customer's bills as Puerto Ricans decry austerity measures.

A federal control board that oversees the island's finances said the plan would save about $3 billion in debt service payments over the next decade.

The deal has to be approved by a federal judge.

People also read these

Global stocks wobble as markets await comment from Yellen

Aug 25, 2016

Global stocks fell Thursday in lackluster trading as investors awaited a speech by Federal Reserve chair Janet Yellen on Friday for hints on a possible further interest rate increase

Asian stock markets mixed as investors wait for Fed cue

Aug 26, 2016

Asian stock markets were mixed Friday, with investors preferring to sit on the sidelines ahead of U.S. Federal Reserve Chairman Janet Yellen's speech for cues on the timing of the next policy rate hike

Stock markets cautious ahead of key Fed speech

Aug 26, 2016

European shares are mostly lower following mixed trading in Asia, with investors preferring to sit on the sidelines ahead of U.S. Federal Reserve Chairwoman Janet Yellen's speech later in the day for cues on the timing of the next policy rate hike

Subscribe to our newsletter!

Your Name

Your Email Address