Puerto Rico Public Finance misses Sept. 1 bond debt service payment

By Caroline Salls

Pittsburgh, Sept. 4 – Puerto Rico Public Finance Corp. did not submit funds for payment of debt service due on Sept. 1 on its series 2012A commonwealth appropriation bonds, according to a notice from bond trustee U.S. Bank NA.

The trustee said Puerto Rico Public Finance issued a notice on July 15 that the final budget approved by the Puerto Rican Legislative Assembly for the 2016 fiscal year did not include appropriations to pay principal and interest due on the bonds.

As a result, the trustee said Puerto Rico Public Finance took the position that no payments can be made and there is no default arising from its failure to make payments.

At this time, U.S. Bank said it has not been directed to take any action under the bond trust agreement.

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