Puerto Rico authorities announce plans to make Jan. 1 bond payments

By Caroline Salls

Pittsburgh, Dec. 10 – The Puerto Rico Infrastructure Financing Authority, the Puerto Rico Convention Center District Authority and the Puerto Rico Highways and Transportation Authority expect to apply funds on deposit in trust agreement debt service reserve funds, a sinking fund or pledged accounts to pay the principal and interest due Jan. 1 on several series of notes, according to news releases.

Specifically, the infrastructure financing authority will use debt service reserve funds to make the Jan. 1 principal and interest payments on its series 2015 dedicated tax fund revenue bond anticipation notes and funds available in a sinking fund, reserve fund or pledged accounts to pay interest due Jan. 1 on its special tax revenue bonds.

In addition, the convention center district authority will use debt service reserve funds to make the Jan. 1 interest payment on its series A hotel occupancy tax revenue bonds, and the highways and transportation authority will use funds on deposit in a bond reserve account to make the Jan. 1 interest payment on its 1968 Resolution bonds and funds available in a senior reserve account and subordinated reserve account to make the Jan. 1 interest payment on its 1998 Resolution bonds.

The authorities said the governor of Puerto Rico authorized the secretary of the treasury to apply available resources to the payment of interest on the public debt on Nov. 30.

As a result of that executive order, clawback revenues are not available to make the Jan. 1 bond payments, the releases said.

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