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Prepa Expects Bondholders to Satisfy $111 Million Bond Purchase Obligations

By on May 10, 2016

SAN JUAN –The Puerto Rico Electric Power Authority (Prepa) announced Tuesday that the conditions required for creditors to fund a $111 million bond purchase under PREPA’s Restructuring Support Agreement (RSA) and related documents have been satisfied, and as a result such creditors are required to fund the $111 million bond purchase on May 12, 2016. 

Prepa says it paid $111 million in interest to those creditors in January in reliance on the creditors’ agreement to relend the same amount if two important milestones in PREPA’s restructuring occurred: first, the enactment of the Prepa Revitalization Act (which occurred Feb. 16), and second, the filing of a petition with the Energy Commission seeking approval of the SPV Petition (which occurred April 7), each in a form acceptable to the creditors, according to the public utility.

Both milestones have been satisfied and the bondholders are now required to fund the $111 million bond purchase on May 12, 2016, Prepa reiterated in its statement.

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