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Puerto Rico Electric revenue bond supplement executed, bonds issued
By Caroline Salls
Pittsburgh, Aug. 7 – Puerto Rico Electric Power Authority and the trustee for its power revenue and power revenue refunding bonds executed a previously announced 17th supplemental agreement with the required consent of the bondholders and insurers, according to a notice released Friday.
As previously reported, trustee U.S. Bank NA said the 17th supplement will modify the trust agreement to allow the issuance of the authority’s series 2015A power revenue bonds in the total principal amount of $128 million, to be paid by the insurers.
During the amendment period, which ends on Sept. 15, any obligation the authority may have to transfer funds to a revenue fund from a general fund is also waived.
A special redemption fund will be established in connection with the issuance of the series 2015A bonds, and the authority will be obligated to make specified deposits into it.
As long as the series 2015A bonds are outstanding under the trust agreement, a self-insurance fund will be held by the trustee, and the funds in that trust will be invested in accordance with the supplement agreement.
The transfer of moneys from the self-insurance fund to the credit of the SRF will be as set forth in irrevocable instructions to the trustee from the authority for the benefit of the series A bondholders if the deposits in question are not made by the authority.
Also during the amendment period, the percentage of bondholders required to direct the trustee to take actions under the trust agreement will be increased to not less than a majority.
According to Friday’s notice, the authority issued and sold the series 2015A federally taxable power revenue bonds on July 31.
The trustee said it expects there to be continuing negotiations between the authority and the forbearing creditors during the forbearance period.
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