The American Samoa Economic Development Authority intends to float another bond series before the end of the year.
The proposed Series 2018 Bond is targeted to raise $51.26 million.
Documents obtained by KHJ News provide a breakdown of how the money would be used.
- $17 million would goes to repaying the Retirement Fund money already spent on Hawaiki Cable;
- $18.5 million is to meet the Hawaiki Cable payment due at the beginning of 2019;
- $10 million goes to the new Fono Building;
- $4.5 million to the Debt Service Reserve Fund; and
- $1.26 million would cover the costs of the bond issuance.
ASEDA proposes to pay for the new bond series with revenues from:
- The Petroleum Coop-$2 million,
- 3% miscellaneous tax-$3 million
- Scanning fees-$500,000,
- Business license fees-$200,000,
- Tobacco tax-$2.1 million,
- Beer tax-$1 million and
- Broadband revenues-$3 million.
ASEDA has scheduled a ratings presentation in Honolulu for November 7 and is aiming for mid-December for the new bond issuance.
ASG is currently paying $8,053,919 annually for the three bond series issued in 2015 which raised $78.9 million.
The total amount ASG will pay for the life of those bonds for principal and interest is $149.1 million.
