Puerto Rico’s Sales-Tax Bonds Gain After Debt Deal Approved (1)

Puerto Rico’s sales-tax bonds rose for a second day after the island’s plan to restructure more than $17 billion of the securities won court approval, marking a major step in the government’s effort to slash its massive debts.

The approval from U.S. District Court Judge Laura Taylor Swain was the last major hurdle for the agreement, under which bondholders will exchange their securities for about $12 billion of new bonds. The terms promise to leave investors recovering 56 cents on the dollar from securities with a junior lien on sales-tax revenue or 93 cents from those with a higher claim. ...