Home' Trinidad and Tobago Guardian : July 14th 2015 Contents A15
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SAN JUAN, PUERTO RICO---
Puerto Rican officials and
advisers yesterday held the
first of what they say will be
several meetings with credi-
tors to explain why they be-
lieve it is necessary to
restructure the US territory s
public debt amid a deepen-
ing economic crisis.
But specifics for bond-
holders were few. While say-
ing "sacrifices" will be re-
quired by everyone involved,
Bank President Melba Acosta
said it was premature to pro-
pose details to investors be-
cause a credible recovery and
fiscal adjustment plan is still
being drawn up.
Once that plan is com-
pleted "the contribution re-
quired from each of our
investors will be made clear,"
Acosta said at the New York
offices of Citigroup.
The live-streamed meet-
ing with bondholders came
about two weeks after Gov
Alejandro Garcia Padilla said
Puerto Rico s outstanding
US$72 billion public debt is
unpayable given the island s
Garcia said he is seeking a
payment moratorium from
bondholders and renegotia-
tions on debt. His adminis-
tration also is pushing the US
Congress to allow Puerto
Rico s government and its
public agencies access to
Chapter 9 bankruptcy if
needed. Acosta told investors
the Caribbean island is
"committed to developing a
comprehensive package of
reforms" to reverse more
than a decade of persistent
economic stagnation. (AP)
The initial public offering (IPO) of
shares and fixed-income units in the
Stallion Property Trust failed to achieve
the $382.4 million subscription target
set by the offerors, according to a news-
paper advertisement yesterday.
The ad, labelled A message from Stal-
lion said: "Our proposed business model,
as detailed in our prospectus, required
full subscription, so therefore we must
regretfully cancel the offering and return
all funds to those who subscribed."
Initially, the offering of shares was
open to the public from May 18 to June
12, but when it became clear to the offer-
ors that it would have been undersub-
scribed, the IPO was extended to July 3.
A financial analyst, speaking with
CNC3 business reporter Judy Kanhai
yesterday attributed the undersubscrip-
tion of the IPO to its timing, as the first
deadline came just before the end of the
parliamentary term, which would have
contributed some political uncertainty.
Also, the timing of the Stallion IPO
came as the investing public is waiting
on word of the Phoenix Park IPO and
some investors may have calculated that
their chances of strong capital gains and
a steady and high dividend stream would
be better with the natural gas liquids
The analyst also said Stallion s low
projected dividend stream might also
have contributed to a lack of interest.
Yesterday s message from Stallion said
the IPO received a "substantial" number
of applications and that the offerors got
"tremendous encouragement and sup-
port from the public."
The message did not quantify how
many applications or the value of the
subscriptions that Stallion did received.
An email soliciting this concrete infor-
mation was sent yesterday to Stallion
director and shareholder of Endeavour
Holdings Joseph Rahael. Answers were
not forthcoming up to press time.
The IPO was meant to raise a total of
$382.4 million with $101.5 million coming
from the sale of equity and $280.9 mil-
lion from the sale of three and seven-
year fixed-income units.
It was proposed in the prospectus that
the three-year units would have paid 3
per cent, while the seven-year units
would have paid 4.5 per cent.
The $382 million that the IPO was
meant to raise would have been used to
repay all outstanding long-term debt
held by Endeavour Holdings Ltd (EHL).
Stallion owns 100 per cent of EHL,
which in turn is the owner of a portfolio
of nine commercial properties that were
at the heart of the offering.
The nine properties---which include
four SuperPharm sites, Price Plaza North
and South and Briar Place in St Clair---
were said to have a total market value
of $831.6 million, according to the
The debt on the properties totaled
$361 million, which would have account-
ed for close to 95 per cent of the IPO
Puerto Rico meeting with creditors
Stallion IPO fails
...investors to get their money back
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