AAFAF - Autoridad de Asesoría Financiera y Agencia Fiscal de Puerto Rico

AFICA to issue $235 million in bonds to pay costs related to cruise terminal P3

Under the proposed transaction, the Puerto Rico Industrial, Tourist, Educational, Medical, and Environmental Control Facilities Financing Authority will issue up to $235 million in bonds, which will finance, in part, substantial repairs and new construction on cruise port piers 1, 3 and 4, and Pan American piers 1 and 2 and related buildings

 

A Puerto Rico government entity will issue $235 million in new bonds to finance capital improvements and transaction costs related to the public-private partnership (P3) agreement to develop and operate the San Juan cruise terminals.

 

The information is contained in a Jan. 11 letter from the Financial Oversight and Management Board to Fiscal Agency and Financial Advisory Authority Executive Director Omar Marrero Díaz.

 

“The Oversight Board understands that the Proposed Debt Transaction will finance capital improvements and transaction costs related to the public-private partnership agreement dated August 15, 2022 between the Puerto Rico Ports Authority and San Juan Cruise Port, LLC to privatize the San Juan cruise terminals for a term of 30 years,” the letter notes.

 

The issuance will be carried out by the Puerto Rico Industrial, Tourist, Educational, Medical, and Environmental Control Facilities Financing Authority (AFICA) for the benefit of the project’s private partner San Juan Cruise Port LLC. Global Ports Holdings PLC is the parent company of San Juan Cruise Port LLC.

 

Under the proposed transaction, AFICA will issue up to $235 million in federal tax-exempt Series 2023A bonds and taxable Series 2023B bonds. The AFICA bonds, along with cash equity funding provided by Global Ports Holdings PLC, will finance substantial repairs and new construction on cruise port piers 1, 3 and 4, and Pan American piers 1 and 2 and related buildings.

 

San Juan Cruise Port LLC will have full responsibility for repayment and collateral.

 

The P3 was signed by the Puerto Rico Ports Authority and San Juan Cruise Port LLC to operate San Juan’s cruise terminals for a term of 30 years.

 

The net proceeds of the AFICA bonds will be used to: pay a portion of the estimated $80.1 million rehabilitation and related costs of the initial investment projects, make a $72 million concession payment to the Ports Authority as required by the P3 agreement, and fund operating expenses and reserves for financing and legal costs of the AFICA bonds.

 

The oversight board also recently authorized the Ports Authority to settle a $601 million claim with the Government Development Bank debt facility to help push forward the P3.

 

Fuente: The San Juan Daily Star

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