COFINA Senior Bondholders Coalition Reaches Plan Support Agreement with the Oversight Board, AAFAF and Other Major COFINA Stakeholders
Aug. 30, 2018
NEW YORK & SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Aug 30, 2018--The COFINA Senior Bondholders Coalition (the “Coalition”), which collectively represents the largest group of organized holders of bonds issued by the Puerto Rico Sales Tax Financing Corporation (“COFINA”), released the following statement this morning regarding the Plan Support Agreement (“PSA”) reached between the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”), the Puerto Rico Fiscal Agency & Financial Advisory Authority (“AAFAF”), and major COFINA stakeholders:
“This negotiated agreement, which outlines the formal conditions and terms for COFINA’s restructuring, is a significant milestone for Puerto Rico on its road to economic revitalization. There is now a clear path for the Oversight Board to contemporaneously seek and obtain court approval for a Settlement Agreement and COFINA Plan of Adjustment with the Title III Court by the fourth quarter of this year. Upon confirmation and consummation, the Government of Puerto Rico will reduce its debt by approximately $7 billion, increase its FY2019 sales tax revenue share by more than $360 million, and once again be able to look to use low-cost securitizations as a method for eventually re-accessing the capital markets.
We also believe it is notable that, in addition to the Commonwealth and Oversight Board, the PSA signatories include a large cross-section of major COFINA creditors, monoline insurers, and local bondholders through the Bonistas del Patio. The parties’ collective efforts have produced a viable compromise that will help Puerto Rico dramatically improve its fiscal situation while balancing equitable recoveries and the resumption of restructured cash interest for all bondholders, including a large number of on-island retail investors and retirees. We look forward to continuing to work alongside our fellow stakeholders towards the confirmation and, ultimately, consummation of a COFINA Plan of Adjustment.”
The Plan Support Agreement can be accessed here.
About the Coalition
Formed in 2015, the COFINA Senior Bondholders Coalition is a group of creditors based throughout the United States. COFINA was the original "rescue bond" established in 2007 following the 2006 passage of bi-partisan legislation by the Puerto Rico Legislative Assembly. At last count made available by the Government of Puerto Rico, COFINA bonds were the most widely held bond amongst on-island individuals and retirees.
This communication and accompanying material is not intended to represent a recommendation or investment advice of any kind. Such content is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational purposes only and, as such, should not be construed as legal or investment advice and/or a legal opinion.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180830005473/en/
CONTACT: Profile Advisors (for the COFINA Senior Bondholders Coalition):
Charlotte Kiaie, 347-343-2999
KEYWORD: UNITED STATES NORTH AMERICA CARIBBEAN PUERTO RICO NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE
SOURCE: The COFINA Senior Bondholders Coalition
Copyright Business Wire 2018.
PUB: 08/30/2018 09:23 AM/DISC: 08/30/2018 09:23 AM