(Reuters) – The deal American Airlines and U.S. Airways Group struck to sell gate slots at half a dozen airports in exchange for government clearance for a merger could lift a cloud that has hung over a popular corner of the municipal bond market since late summer.
The two carriers agreed on Tuesday to sell gate slots at Reagan National, LaGuardia and five other U.S. airports in order to allay anti-trust concerns raised by the U.S. Department of Justice, which had sued to block the two from combining to form the world’s largest airline.
Oct 30 (Reuters) – Alabama’s Jefferson County and Wall
Street creditors have reached agreement on a revised plan to end
the second-largest U.S. municipal bankruptcy, county officials
said on Wednesday.
The new terms were not made public, but county officials had
said they needed $350 million more in concessions because
interest rates had risen since June, when JPMorgan, hedge funds
and other creditors reached a tentative settlement to end the
$4.2 billion bankruptcy.
Sept 27 (Reuters) – Puerto Rico’s municipal tax-free bonds
yields are luring a new class of buyers: hedge funds and
distressed debt investors betting the Caribbean island will keep
servicing its massive debt.
Trading volumes in Puerto Rico general obligation bonds,
which are rated barely investment grade and may tumble into
junk-bond territory, spiked in mid-September. Yields jumped for
a few trading days above the magic number of 10 percent and
prompted Puerto Rico finance officials to scale back their 2013
schedule of planned muni market sales.
Sept 12 (Reuters) – Puerto Rico’s policymakers are expected
to weather with short-term borrowings a storm of worry in
America’s $3.7 trillion municipal bond market that has whipped
the Caribbean island’s interest rates into the double digits,
Three deals privately placed on Aug. 29 for $1.4 billion in
bank anticipation notes (Bans) and other short-term notes give
the Caribbean island some liquidity, but carry the risk of
further spikes in interest rates.
Sept 10 (Reuters) – A day after a Puerto Rico bond sell-off
pushed yields above 10 percent, the Government Development Bank
said on Tuesday it is scaling back bond sales planned for the
rest of 2013.
The GDB, which sells bonds for the Caribbean island, its
agencies and local governments, said it will cut back planned
debt issuance to between $500 million and $1.2 billion because
of current market conditions and recent private transactions.
(Reuters) – For generations, Puerto Ricans have been migrating to the mainland United States in search of a better life. But the Caribbean island’s long recession has turned a steady flow into a torrent, stripping the territory of its young and educated population and pushing its economy into a deeper rut.
The effects are evident in the capital city of San Juan, where vacant offices dot its Golden Mile banking strip and blocks of empty condominiums have become eyesores marring its tropical beach front.
Sept 10 (Reuters) – For generations, Puerto Ricans have been
migrating to the mainland United States in search of a better
life. But the Caribbean island’s long recession has turned a
steady flow into a torrent, stripping the territory of its young
and educated population and pushing its economy into a deeper
The effects are evident in the capital city of San Juan,
where vacant offices dot its Golden Mile banking strip and
blocks of empty condominiums have become eyesores marring its
tropical beach front.
MIAMI, Sept 6 (Reuters) – Florida’s Port of Miami, used by
four million cruise-ship passengers each year, early next week
taps the U.S. municipals market with a $385 million revenue
bonds deal meant to lock in place its standing as a major cargo
Readying for the 2015 completion of an industry-shifting
expansion of the Panama Canal, the port owned by Miami-Dade
County handles 1,600 cargo vessels a year and is spending nearly
$1 billion on capital improvements through 2018.
(Reuters) – Detroit’s school system got a tough lesson from America’s $3.7 trillion municipal bond market when investors demanded and obtained sky-high interest rates on debt issued just a month after the city filed the nation’s biggest-ever municipal bankruptcy case.
The $92 million of one-year state aid revenue notes sold through the Michigan Finance Authority came with a whopping 4.375 percent coupon and priced at par, according to a pricing sheet from lead manager JP Morgan Securities.
Aug 12 (Reuters) – Alabama’s Jefferson County has hiked
forecasts for yields it expects to pay and increased the planned
size of a bond sale vital to its reorganization plan to pay off
Wall Street creditors and exit America’s second-largest
According to documents revised after recent sharp increases
in U.S. interest rates, which Jefferson County officials say
could threaten their $4.2 billion negotiated plan of adjustment,
the county now forecasts tax-free yields ranging from 4.5
percent to 7 percent on $1.98 billion of new debt.