(Adds ABR definition)
NEW YORK Aug 14 Puerto Rico's electric power
authority, known as PREPA, will pay an interest rate of
alternate base rate (ABR) plus 4 percent under credit agreements
with Scotiabank and Citibank, the utility said in
a filing on Thursday.
PREPA disclosed the rate in a filing on a site of the
Municipal Securities Rulemaking Board. It earlier said that
banks extended a vital line of credit to March 31 from a
previous deadline of Thursday.
ABR is typically defined as the greatest of the prime rate,
the federal funds rate plus 50 basis points, or LIBOR plus 100
PREPA was on the hook for $146 million from Citibank and
$525 million from a consortium led by Scotiabank. PREPA had
already gained a two-week extension to the credit lines that
expired on Thursday.
Its bank credit lines are now extended to March 31, during
which the banks will receive interest payments, PREPA said.
(Reporting by Hilary Russ and Ed Krudy; and Luciana Lopez;
Editing by Ken Wills, Bernard Orr)