PREPA’s uninsured bondholders have until Nov. 30 to join debt deal
By The Star Staff
The Puerto Rico Electric Power Authority’s (PREPA) uninsured bondholders have until Nov. 30 to decide if they want to join the utility’s plan of adjustment, according to an Electronic Municipal Market Access (EMMA) filing.
The deadline is exclusively for holders of uninsured PREPA bonds that are not part of the settlement agreement reached with all holders of uninsured utility bonds in January of this year, according to the Sept. 29 notice.
Failure to sign the plan support and settlement agreement and to tender the bonds for assignment of a new Committee on Uniform Securities Identification Procedures (CUSIP) number will result in the loss of the opportunity to settle, the document said.
After Nov. 30, new CUSIPs will be assigned on Dec. 1 to replace the original CUSIPs by which the existing PREPA bonds are identified, according to the notice.
“The assignment of such alternative identifying CUSIPs does not change or cause a reissuance of the uninsured bonds or change the prepetition nature of claims arising from the uninsured bonds in any way,” the filing noted.
The new alternative identifying CUSIPs will mirror the attributes of the original PREPA securities, the document indicated.
The final hearing on PREPA’s confirmation plan is to take place in March 2024.