Puerto Rico Electric bond agreement revised; law gets no challenges

By Caroline Salls

Pittsburgh, April 5 – Puerto Rico Electric Power Authority power revenue and power revenue refunding bond trustee U.S. Bank NA said it and the authority executed an 18th supplement to the trust agreement that provides temporary relief to the authority from its obligation to transfer funds into a revenue fund from its general fund, according to a notice released Tuesday.

As a result, no money is expected to be transferred to a sinking fund from the revenue fund during the amendment period.

The amendment period is scheduled to expire at 11:59 p.m. ET on June 30.

In addition, the trustee said it has not been asked or directed by the bondholders to initiate any challenge to the PREPA Revitalization Act, which was enacted on Feb. 16.

In the absence of a bondholder direction, the trustee said it does not intend to initiate a validation proceeding challenging the act by the April 19 deadline.

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