BlackRock, Taconic Capital Eye Deal on Puerto Rico Utility Debt

Puerto Rico’s bankrupt utility, which needs to restructure nearly $9 billion of debt, is closing in on a deal with at least two bondholders as soon as this Friday.

BlackRock Financial Management and Taconic Capital Advisors are expected to reach a settlement with the island’s financial oversight board by a Friday deadline on how to restructure the debt of Puerto Rico’s Electric Power Authority or Prepa, according to a person familiar with the negotiations.

That’s a step forward for the board, which is managing Prepa’s bankruptcy as the island struggles to modernize its aging power grid to help boost its ...