Oct. 20 (Bloomberg) -- Newland International Properties Corp. bonds issued to finance construction of Panama’s Trump Ocean Club tumbled a day after the property’s chief financial officer said the bonds may be restructured before a Nov. 15 payment.
Yields on the bonds that mature in 2014 rose 12 percentage points to 33 percent, a record high, according to data from Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The securities’ price fell 17.95 cents to 56.6 cents on the dollar.
Moody’s Investors Service downgraded the bonds today to Caa3, nine levels below investment grade, from B3, citing the restructuring plan, which it said “would constitute a distressed exchange under Moody’s definition of default.”
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