Prepa set to establish pricing for bond deal
Puerto Rico is set to return to the US municipal bond market with the US$600 million deal for the Puerto Rico Electric Power Authority (Prepa). Prepa is set to announce the pricing for the bond deal by mid August.
Puerto Rico finance officials, along with José Pagan, the interim president-designate of the Government Development Bank, announced that the Prepa utility deal will be the first offering amidst the US$70 billion of outstanding debt and government credits.
Puerto Rico announced that the Prepa deal will not dependent on the completion of Comprehensive Annual Financial Report (CAFR). The report is pending completion from the commonwealth officials. Puerto Rico officials promised that they will deliver the report by end of July. Melba Acosta, Treasury Secretary, announced that they report would take another "three to four weeks" before completion.
Juan Alicea Flores, Prepa Executive Director, announced to Wall Street investors that the US$80 million allocated in Prepa's construction fund would be exhausted by the end of July.
Flores said that the new bonds issued will be used to finance the capital works program of the company.