Bondholders in Puerto Rico ERS

We are pleased to announce that BroadSpan Capital LLC acted as exclusive financial advisor to the UBS Puerto Rico Family of Funds (the “Funds”) with respect to the restructuring of the debt of the Employees Retirement System of the Government of Puerto Rico (“ERS"). The Funds, together with other coordinating bondholders, held over 71% or US$2.1 billion of the US$3.0 billion in eligible bond claims prior to the restructuring.

The restructuring was undertaken pursuant to the Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”) which established, among others, a Financial Oversight and Management Board (the “Oversight Board”). The Oversight Board eventually filed petitions for relief for the Commonwealth of Puerto Rico (the “Commonwealth”) and commenced debt adjustment cases under Title III of PROMESA which provided a mechanism for the Commonwealth to work with holders of ERS bonds to seek to adjust debt terms utilizing certain sections of the U.S. Bankruptcy Code.

Within this process, BroadSpan and the Funds conducted negotiations with multiple counterparties including the Oversight Board and their advisors, the Commonwealth and their advisors, and other holders of Puerto Rico debt, seeking to balance settlement discussions among holders of ERS bonds, the Commonwealth, and their respective constituencies.

Under the 2022 Plan of Adjustment, all holders of ERS bonds received cash distributions, as well as interests in a trust, the assets of which being a private equity portfolio. Subject to certain conditions, consummation costs were also included to compensate for the cost of negotiation and confirmation for
participating holders.