[SU] LEG ECO
TO BUSINESS, AND NATIONAL EDITORS:
Joint Statement from Treasury Secretary and GDB Chairman on Passage of
Bill Approving General Obligation Bond Financing
SAN JUAN, Puerto Rico, March 4, 2014 /PRNewswire-USNewswire/ -- Today,
Treasury Secretary Melba Acosta Febo and Government Development Bank
for Puerto Rico (GDB) Chairman David H. Chafey provided a joint
statement regarding the Puerto Rico Legislature's approval of the
proposed General Obligation bond issuance of up to $3.5 billion. The
bill was signed into law today by the Governor of the Commonwealth of
Puerto Rico, Alejandro García Padilla.
"We are pleased that both the Senate and the House have approved the
authorization for this proposed financing, and that Governor García
Padilla has signed this bill into law. We plan to use the offering
proceeds principally to repay outstanding lines of credit with GDB,
strengthen the GDB's liquidity, and refinance other outstanding debt."
"This proposed bond issuance will support Puerto Rico's ongoing and
aggressive actions to continue strengthening its fiscal position and
will provide additional flexibility as the Island continues its
progress on economic development and job creation initiatives."
The bill authorizes the Secretary of the Treasury to consent to New
York as choice of law and jurisdiction with respect to the bonds.
Barclays, Morgan Stanley and RBC Capital Markets have been selected as
joint lead managers for the upcoming GO bond issuance, with Barclays
acting as lead book-running manager.
Not an Offering of Securities
This statement does not constitute, nor does it form part of, an offer
to sell or purchase, or the solicitation of an offer to sell or
purchase, any securities or an offer or recommendation to enter into
any transaction. This presentation has been prepared for
informational purposes only. Any offer or sale of any security may
only be made pursuant to the relevant offering documents and binding
transaction document and is subject to the detailed provisions
therein, including risk considerations. Prospective purchasers should
obtain a copy of the relevant offering materials prior to making any
The information included in this statement contains certain
forward-looking statements. These forward looking statements may
relate to the fiscal and economic condition, economic performance,
plans and objectives of the Commonwealth of Puerto Rico or its
agencies or instrumentalities. All statements contained herein that
are not clearly historical in nature are forward looking.
This statement is not a guarantee of future performance and involves
certain risks, uncertainties, estimates, and assumptions by the
Commonwealth and/or its agencies or instrumentalities that are
difficult to predict. The economic and financial condition of the
Commonwealth and its agencies or instrumentalities is affected by
various financial, social, economic, environmental, and political
factors. These factors can be very complex, may vary from one fiscal
year to the next, and are frequently the result of actions taken or
not taken, not only by the Commonwealth and/or its agencies or
instrumentalities, but also by entities such as the government of the
United States of America or other nations that are not under the
control of the Commonwealth. Because of the uncertainty and
unpredictability of these factors, their impact cannot, as a practical
matter, be included in the assumptions underlying the Commonwealth's
or its agencies or instrumentalities' projections.
SOURCE Government Development Bank for Puerto Rico (GDB)
/CONTACT: Betsy Nazario, GDB, (787) 415-1231, Betsy.Nazario@bgfpr.com; or Treasury Contact, María E. Quintero, (787) 398-0486, Maru.Quintero@hacienda.gobierno.pr
CO: Government Development Bank for Puerto Rico (GDB)
ST: Puerto Rico
SU: LEG ECO
-- DC76312 --
0000 03/04/2014 15:16:00 EDT http://www.prnewswire.com
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