Puerto Rico bonds traded near a two-month high as creditors met with officials about restructuring the power utility's debt, a step that could help ease the junk-rated island's fiscal crisis.
Commonwealth securities maturing July 2035 traded Monday at an average price of 84.3 cents on the dollar, close to the highest since March 16, according to data compiled by Bloomberg. It's the most actively traded Puerto Rico bond this year. The island's municipal debt has gained for 12 straight days through Friday, S&P Dow Jones Indices show. The bonds haven't advanced for a longer stretch since July 2014.
Lisa Donahue, chief restructuring officer at Puerto Rico's Electric Power Authority, released a restructuring plan to some of the utility's creditors Monday at a meeting in New York. The junk-rated agency owes nearly $9 billion and faces a $416 million principal and interest payment to investors on July 1.
Details of Donahue's plan won't be publicly released until negotiations are finalized, Jose Echevarria, spokesman for the utility, known as Prepa, said in an e-mail.
Bondholders, insurance companies and banks in August signed an agreement to allow Prepa time to work on a restructuring plan. That pact, which has since been extended, is now set to expire on June 4.
Prepa debt maturing July 2037 traded Monday at an average price of 55.6 cents on the dollar, compared with 56.1 cents on Friday, data compiled by Bloomberg show.
