UPDATE 1-Puerto Rico bond offer postponed, seen luring high-yield funds
(Recasts with investors on timing, S&P comments)
By Jessica DiNapoli
NEW YORK Aug 18 (Reuters) - Puerto Rico postponed until later this week its first bond sale in public markets since it defaulted, investors said on Tuesday, an offering that according to Fitch ratings agency may attract high-yield municipal funds.
According to data company IPREO, the $750 million deal for the Puerto Rico Aqueduct and Sewer Authority (PRASA) was slated to price on Tuesday.
One investor in contact with underwriters, who declined to be named, said they had been told the issue was postponed to Thursday.
"From everything I know now, I don't think (buying the issue) is a good idea," that investor said, adding they were concerned about the risk of default.
Lyle Fitterer, head of tax-exempt fixed income at Wells Capital Management, also said that it was his understanding that the release would happen Thursday.
It is meant "just to give investors more time to do their work," said Fitterer, who said he learned of the postponement from one of the underwriters.
PRASA and Bank of America Merrill Lynch, the lead underwriter for the deal, did not respond to requests for comment on the date of the pricing. Continuación...