AAFAF closes PRIFA-MEPSI bond transaction
By The Star Staff
The Fiscal Agency and Financial Advisory Authority (AAFAF by its Spanish initials) announced Tuesday on behalf of the Infrastructure Financing Authority (PRIFA) that it finalized an infrastructure bond exchange with the Mental Health Infrastructure Revenue Bonds, 2007 Series A (PRIFA-MEPSI Bonds).
The PRIFA-MEPSI Bonds were in circulation for an approximate amount of $35 million and were exchanged for approximately $26 million in rental bonds of the sales and use tax, known as COFINA Sales Tax Revenue Bonds, owned by PRIFA. The entirety of the existing PRIFA-MEPSI Bonds was exchanged.
The resolution of the PRIFA-MEPSI Bonds represents a significant step in the resolution of PRIFA’s existing debt and occurs following the announced agreements with the holders of the notes in advance of bonds, known as PRIFA
Bond Anticipation Notes, and special tax income bonds known as PRIFA Special Tax Revenue Bonds, Series 2006 (or PRIFA Rum Bonds), as well as following the successful restructuring of substantially all of the PRIFA Revenue Bonds (Ports Authority Project), in 2019.
The exchange was approved by the Financial Oversight and Management Board for Puerto Rico. The successful resolution of the PRIFA-MEPSI Bonds is the result of extensive good faith negotiations and will allow PRIFA to focus on Puerto Rico’s other long-term infrastructure needs,” AAFAF Executive Director Omar Marrero Díaz said.
“This bond restructuring, together with the agreements reached with the holders of other PRIFA bonds, represents an important step for Puerto Rico to regain access to capital markets,” Marrero Díaz said.