Fiscal board extends debt maturity of Bayamón hospital
- The San Juan Daily Star
- 2 hours ago
- 2 min read
By THE STAR STAFF
The Financial Oversight and Management Board for Puerto Rico has approved a request to extend the maturity date of a $35 million bond issuance tied to the purchase and rehabilitation of HIMA San Pablo Bayamón Hospital.
The extension, granted under Section 207 of the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), moves the current maturity date from Dec. 1 of this year to June 1, 2026.
The approval occurs amid a hospital crisis impacting some 17 health care facilities. This week, a hospital in Humacao shut down leaving 150 people out of work.
The request was submitted by the Fiscal Agency and Financial Advisory Authority (AAFAF by its initials in Spanish) on Nov. 19,, on behalf of the Puerto Rico Industrial, Tourist, Educational, Medical, and Environmental Control Facilities Financing Authority (AFICA). The bonds, originally approved by the oversight board in November 2023, were issued through a private placement to finance the acquisition of the Bayamón facility by the Obligated Group -- Sociedad Española de Auxilio Mutuo y Beneficiencia de Puerto Rico and Hospital Español Auxilio Mutuo de Puerto Rico Inc. -- and to fund urgent repairs and maintenance.
According to the oversight board, the only change to the Series 2023 Bonds is the extension of the maturity date; all other terms and conditions remain unchanged. The additional time will allow the Obligated Group to finalize a comprehensive capital expenditure and long-term financing plan for the hospital, which must be submitted to AFICA, AAFAF and the oversight board by June 1, 2026.
The board reiterated that repayment of the bonds is not guaranteed by the Commonwealth of Puerto Rico or any of its agencies, and that collateral and repayment obligations rest solely with the Obligated Group.
“We look forward to continuing our work with AAFAF to accomplish the requirements and goals of PROMESA for the benefit of Puerto Rico and its people,” the oversight board said in its statement.