- Puerto Rico has inked a deal with its bondholders on how to restructure $35B of debt, which could allow the U.S. territory to emerge from bankruptcy in early 2020 after three years of financial limbo.
- The agreement, which is on the framework for the plan of adjustment, provides for more than a 60% average haircut for all $35B, a 36% haircut on pre-2012 general obligation bonds, and a 27% haircut on public authority bonds.
- Of the roughly $13B in outstanding GO bonds, the bonds issued pre-2012 would receive $0.64 on the dollar, while the 2012 and 2014 GO bonds have a settlement option of receiving $0.45 and and $0.35 on the dollar.