(Reuters) - Bonds in Puerto Rico's power authority PREPA rose on Monday to trade at their highest level in over three months following the announcement on Thursday that the troubled utility has hired a top restructuring expert to work on overhauling its business.
PREPA bonds carrying a coupon of 5 percent and maturing in 2028 traded at an average price of 57.250 cents on the dollar and a yield of 11.720 percent on Monday compared to 51.458 cents and a yield of 13.018 when the bonds last traded on Thursday.
The price was the highest since May 28 when the bonds traded with an average price of 57.850 and a yield of 11.494 percent, according to Thomson Reuters data.
PREPA selected Lisa Donahue from advisory firm AlixPartners to lead a restructuring at the utility, which has over $9 billion in total debt. Donahue was hired under a forbearance agreement with lenders and other creditors.
"We have an opportunity here to really transform PREPA for the benefit of all the people of Puerto Rico and the creditors," Donahue told Reuters on Friday in her first interview since being appointed PREPA's chief restructuring officer. (Reporting by Edward Krudy; Editing by Bernard Orr)
Puerto Rico power authority PREPA bonds trade higher
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