Holders of Puerto Rico’s CVIs Get $388 Million Payment

Puerto Rico directed $388.8 million to holders of its so-called contingent value instruments, a type of debt which only repay if sales-tax revenue collections surpass budgeted estimates.

• Holders of the general obligation CVIs received the payment on Nov. 1 because the commonwealth’s sales and use tax receipts in the fiscal year that ended June 30 exceeded a baseline of $1.28 billion, according to a filing on the Municipal Securities Rulemaking Board’s website.
• The CVIs are taxable and do not carry interest. Last year, investors received a similar payment of $361.8 million.
• The securities are part of Puerto Rico’s 2022 debt ...