Puerto Rico sold roughly $13 billion in general obligation bonds and another $18 billion in bonds backed by the island’s sales tax revenues, known by their Spanish acronym, COFINA. Such transaction data and/or related information may not exist for all municipal securities and may not be required to be submitted to the MSRB for certain types of municipal securities transactions. SAN JUAN (Reuters) - Puerto Rico would shed about $24 billion of debt and move closer to exiting bankruptcy under an agreement with bondholders announced on Sunday by the U.S. commonwealth’s federally created financial oversight board. 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Our attorneys have extensive experience representing investors wronged in the Puerto Rico bond default crisis. September 24, 2004 . The Service is reproduced by permission of the MSRB under a non-exclusive license. The federal board overseeing Puerto Rico’s finances has invalidated the commonwealth’s pension obligation bonds on constitutional grounds and is now suing large bondholders to recoup previously paid principal and interest.. Assured Guaranty does not support Puerto Rico’s proposed general obligation plan support agreement. The Caribbean island commenced a form of municipal bankruptcy in May 2017 to restructure about $120 billion of debt and liabilities. Pensions & Investments reported:. The default was widely anticipated, and bond prices on Puerto Rico debt remained largely unchanged Friday, with benchmark uninsured general obligation bonds trading at 67.5 cents on the dollar. Because the Constitution of Puerto Rico established that "all available resources" must first go towards payment of the Commonwealth's general obligation bonds, in 2006, the Commonwealth began issuing Puerto Rico Sales Tax Revenue Bonds, to avoid its constitution's limits by being paid directly into a separate urgent interest fund. Tuesday’s price was up 7.8% from an average low of 84.511 on July 6. It also shortens the timeframe to pay off the island’s legacy debt to 20 years from 30 years. Many investors have been hit particularly hard by the Puerto Rico general obligation bond crisis. Puerto Rico has reached a deal with creditors who hold $35 billion in its general obligation bonds, passing an important milestone as it tries to resolve its $129 billion debt crisis.. History: Stone Lion Capital was founded by Alan Jay Mintz and Gregory Augustine Hanley in … Creditors would receive $10.7 billion in new debt, split between GO bonds and sales tax-backed junior lien bonds, along with $3.8 billion in cash, the board said. Our Standards: The Thomson Reuters Trust Principles. The MSRB does not review transaction data submitted by submitters for accuracy, completeness or any other purpose, and does not warrant or guarantee the accuracy of any such transaction data and/or related information. The newest plan targets general obligation bonds and other debt held by the government, and it still has to be approved by a federal judge overseeing a bankruptcy-like process as Puerto Rico … Investors were sold false promises of virtually guaranteed safety. The deal settles a dispute between holders of Puerto Rico general obligation bonds that were issued before 2012 and owners of general obligation bonds issued more recently. Puerto Rico's default Friday marks the first time that a state or state-like entity (Puerto Rico is a U.S. territory) has failed to pay general obligation bonds since the Great Depression. Pensions remain an issue for the governor and others as the board has been seeking a maximum 8.5% cut for retirees who receive more than $1,200 in monthly benefits. Commonwealth of Puerto Rico - $1,042,500,000 Tax and Revenue Anticipation Notes, Series 2006 December 22, 2005 : Commonwealth of Puerto Rico - $440,460,000 Public Improvement Bonds of 2005, Series A (General Obligation Bonds). To learn more about what we can do for you, please call our team today at 844-689-5754. The MSRB, its officers, directors, employees, agents, consultants, and licensors make, and have made, no recommendations regarding any of the securities or other investment vehicles, referred to or described in the Service. This is the key feature that distinguishes COFINA bonds from general obligations bonds. It is premised on a number of terms that violate Puerto Rico law, its Constitution and PROMESA. The deal would end the board’s pursuit to void those bonds in court and the risk that hold-out bondholders would recover none of their investment if the debt were invalidated. General Obligation vs. Revenue Bonds: A MunicipalBonds.com Guide. The MSRB and its officers, directors, employees, agents, consultants, and licensors shall have no liability in tort, contract, or otherwise (and as permitted by law, product liability) to you or anyone else for any reason associated or in connection with, resulting from or arising out of your use of the Service. ... Bonds by State. The Puerto Rico Oversight Board's move to declare null $6 billion of general obligation bonds may itself be illegal, according to two attorneys following the case. Puerto Rico has reached agreement with a large portion of its general obligation bond holders—and the holders of the constitutionally protected “Puerto Rico Building Authority bonds.”. PUERTO RICO’S REPUDIATION OF GENERAL OBLIGATION BONDS: A REAL RISK OR JUST KABUKI THEATER. ... General Obligation vs. Revenue Bonds; Risks of Bond Investing; Understanding Bond Ratings; The Safety of Municipal Bonds; Default Rates of Municipal Bonds; “My position during this process has been that if bondholders receive better treatment in a new deal, pensioners must also receive better treatment,” Vazquez said in a statement. The Lawful Constitutional Debt Coalition (the “Coalition” or “LCDC”), which includes certain major holders of Puerto Rico’s General Obligation (“GO”) Puerto Rico first defaulted on its general obligation bonds in July 2016, when it failed to pay roughly $1 billion owed to its creditors and hasn't made any payments since. Just months later, residents had to endure devastating hurricanes and more recently the strongest earthquake in more than a century. U.S. investors are going to suffer The transaction data provided through the Real-Time Transaction Subscription Service represents municipal securities transaction data made available by brokers, dealers, and municipal securities dealers to the MSRB and related information. Puerto Rico bondholders, oversight board strike $35 billion debt restructuring deal.