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.
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.
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
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.
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.
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
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.
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.
NEW YORK, May 30 (Reuters) – Oklahoma’s Republican Governor
Mary Fallin has signed legislation that scraps defined-benefit
pension plans for some incoming state workers, offering them
plans favored in the private sector that shift the risk of
retirement saving onto employees.
State pension systems are the last holdout of traditional
defined benefit plans in the United States. Many of the plans,
which offer a guaranteed income stream on retirement, are
severely underfunded due to the 2008-2009 financial crisis and
years of mismanagement when state authorities did not make
NEW YORK (Reuters) – New Yorkers who rely on the state pension fund for their retirement may be short-changed about $735 million over the next 10 years as a result of Governor Andrew Cuomo’s policy of permitting local authorities to defer fund payments so they can fill budget gaps and pay for services such as schools, street lights and police.
Cuomo has been trying to rid New York of its reputation as a high-tax state and has put limits on tax increases by local governments, reducing their ability to meet their often rising obligations. The smoothing policy is intended to make it easier for them to raise money without raising taxes.