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Sep 24, 2014

NYC transportation plan may not be funded for years: official

NEW YORK (Reuters) – New York’s Metropolitan Transportation Authority passed a 5-year investment program with a $15.2 billion shortfall on Wednesday, and its chief executive said it may take years before the agency secures full funding.

While the first few years of the $32 billion plan would be fully funded, it would cast doubt over out years at a time when the MTA is already facing the prospect of delays to existing projects and growing demands on its aging infrastructure.

Sep 23, 2014

New York’s MTA faces $15.2 billion funding shortfall in infrastructure plan

NEW YORK (Reuters) – New York’s Metropolitan Transportation Authority, operator of one of the world’s largest public transportation networks, said ahead of a board meeting on Wednesday that it is facing a $15.2 billion shortfall for its infrastructure needs.

In a document posted on its website the MTA said it will “work with its funding partners to identify the additional resources needed to achieve full funding.” It said alternatives include reducing the size of the capital program or increasing fares and tolls.

Sep 12, 2014

Puerto Rico to issue $900 mln in notes over next 30 days -source

NEW YORK, Sept 12 (Reuters) – Puerto Rico will aim to sell
$900 million in tax and revenue anticipation notes in the next
30 days to meet near-term cash needs, a source familiar with the
matter said on Friday.

Tax and revenue anticipation notes are standard cash flow
instruments designed to meet expenses throughout the year, but
the deal is likely to attract attention given the U.S.
commonwealth’s financial troubles.

Aug 13, 2014

Puerto Rico creditor group swells to $300 billion in assets

NEW YORK, Aug 13 (Reuters) – A group of creditors that could
be a source of financing for Puerto Rico if it restructures some
of its debt has gained eight new members with an additional $60
billion in assets, including hedge fund Davidson Kempner
Capital Management, the group said on Wednesday.

The creditors, which call themselves the “Ad Hoc Group,” now
have 27 asset managers as members with more than $300 billion in
assets under management. The group says it holds more than $4.5
billion of Puerto Rican bonds.

Jul 31, 2014

Puerto Rico’s electric power authority gets extension from creditors

NEW YORK, July 31 (Reuters) – Banks gave Puerto Rico’s
electric power authority a two-week extension on $671 million in
revolving loan facilities on Thursday as the troubled authority
negotiates with creditors over its vital near-term cash needs.

The reprieve was not enough to stop another downgrade from
ratings agency Standard & Poor’s, which cut its view on the
authority, known as PREPA, two notches deeper into junk. S&P
said PREPA was now reliant on favorable conditions to meet its
obligations.

Jul 24, 2014

Bank settlements create windfall for US, and wrangling over how it is spent

NEW YORK, July 24 (Reuters) – U.S. authorities’ $8.9 billion
settlement last month with French bank BNP Paribas for sanctions
busting will pay for New York cops to get live computer feeds of
street crime and for new carpets in the offices of prosecutors,
among many other things.

In the past few months, American regulators and prosecutors
have forced some of the world’s largest banks to pay massive
fines for everything from breaching U.S. sanctions to alleged
mortgage abuse and illegal tax schemes.

Jul 17, 2014

Puerto Rico says commitment to honoring debt ‘unshaken’

NEW YORK, July 17 (Reuters) – Puerto Rico is fully committed
to honoring its debts and expects to be able to access capital
markets again possibly as soon as early 2015, officials of the
U.S. Commonwealth said during a conference call on Thursday.

The call was aimed at reassuring investors after Puerto Rico
passed a law allowing public corporations, such as electric
power authority PREPA, to restructure their debt. The law led to
a raft of debt downgrades and fears Puerto Rico may embark on
full-scale restructuring of its more than $70 billion debt.

Jun 27, 2014

Puerto Rico agency debt slumps as law fuels default fears

June 27 (Reuters) – Debt in some of Puerto Rico’s biggest
public corporations slumped in heavy trade on Friday after a new
law allowing them to restructure their debt sparked ratings
downgrades and fears of imminent default.

The rapid turn of events that started with the announcement
of the law on Wednesday led to a sustained bout of selling in
the debt of the U.S. Commonwealth’s electricity, highway and
water authorities.

Jun 10, 2014

Puerto Rico may delay payments to beat $320 mln tax shortfall

NEW YORK, June 10 (Reuters) – Puerto Rico may reschedule
payments to the Government Development Bank as well as the
pension system for central government employees as it aims to
reduce a $320 million tax revenue shortfall by the end of the
fiscal year on June 30, the U.S. Commonwealth said on Tuesday.

The government said it is considering restructuring about
$250 million in payments to the GDB and $90 million to the
Central Government Employees Retirement Systems Administration.
It may also use a $35 million surplus from a 2009 sale of sales
tax bonds to plug the gap, it said.

Jun 6, 2014

Starved muni market awaits $850 mln New York City debt sale

NEW YORK, June 6 (Reuters) – New York’s Mayor Bill de Blasio
has little to fear from bond vigilantes when the city goes to
market next week with an $850 million general obligation
refinancing deal, the city’s first bond deal since the mayor
inked a multibillion dollar deal with city labor unions in May.

A scarcity of new bonds and a reach for yield in the $4
trillion municipal bond market this year mean the city’s debt
will likely get a good reception, allowing de Blasio to press
ahead with his big-ticket, progressive agenda without fear of
investors punishing him with higher borrowing costs.

    • About Edward

      "Ed Krudy leads a team covering the U.S. equity market from New York, where he has been since 2009. Prior to that he set up Thomson's new bureau in Budapest, where he initiated coverage of economic, political, market and company news."
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