Assured supports proposal to restructure P.R. GO bonds
Debt insurer Assured Guaranty has aligned with the Ad Hoc Group of Puerto Rico’s General Obligation Bondholders, agreeing to the deferral of principal repayment of Puerto Rico General Obligation Bonds on terms “economically consistent with the previously released term sheet,” the group said Monday.
The restructuring proposal now has support of investors and insurers holding or controlling nearly $6.5 billion of Puerto Rico GO bonds. Other than the insurer-specific modifications, the Ad Hoc Group of GO Bondholders term sheet is the same in that it still provides for nearly $2 billion in principal deferment and new liquidity. Assured Guaranty will not invest in the new money component, but that will not affect the ability to raise such new money component.
“We’re pleased to have growing support for the joint restructuring proposal. As the term sheet shows, the group agrees to defer principal repayment in order to give the Commonwealth sufficient time to deal with its current financial situation. We welcome the government of Puerto Rico’s response to these terms,” said Andrew Rosenberg of Paul, Weiss, Rifkind, Wharton and Garrison LLP, an advisor to the Ad Hoc Group of Puerto Rico’s GO Bondholders.