RFP issued for new trustee for Puerto Rico’s Cofina bonds
SAN JUAN – The Puerto Rico Fiscal Agency and Financial Advisory Authority, known as Aafaf in Spanish, is looking for a new trustee for bonds of the Puerto Rico Sales Tax Financing Corp. (Cofina by its Spanish acronym), which recently announced a preliminary agreement for the adjustment of its debt.
The deadline for submitting questions related to the request for proposals (RFP) is Friday. The deadline to submit a proposal to become Cofina’s trustee is Oct. 5.
On Aug. 29, the Cofina senior and junior bondholders agreed on the terms on how the island’s use-and-sales-tax revenues will be distributed. The preliminary agreement provides for the issuance of a single tranche of securities. It would grant Cofina an ownership interest in 53.65% of the sales-and-use tax, which will be used to fund debt service payments on the new Cofina bonds.
Aafaf said it is seeking submissions from entities interested in serving as disbursement agent for the Cofina bonds.
“Respondents must be a trust company or bank having the powers of a trust company, having a capital and surplus of not less than $50,000,000 and an investment grade rating from S&P or Moody’s. Before responding to this request for proposal,” the entity said.
Currently, the Cofina trustee is the Bank of New York Mellon. The RFP is a sign that the financial institution will no longer be Cofina’s trustee. A new trustee for Cofina bonds is slated to be selected by Oct. 15.
See the RFP here: http://www.aafaf.pr.gov/assets/cofina-rfp-for-trustee.pdf