Market Overview

COFINA Senior Bondholders Coalition Reaches Plan Support Agreement with the Oversight Board, AAFAF and Other Major COFINA Stakeholders


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

"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

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.

Cautionary Statement

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

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