The American Samoa Economic Development Authority has delayed its plan to refinance its bonds.
This was confirmed by ASEDA Board member, Executive Assistant to Governor Lolo Moliga, Iulogologo Joseph Pereira.
The ASEDA Board had issued notice early this month that the board had passed a resolution authorizing the issuance of General Refunding Bond Series 2020.
It was explained that the intention was to refinance outstanding general revenue bond Series 2015 at a more favorable interest rate while the market had dropped due to the COVID-19 pandemic.
The ASEDA Board had scheduled a bond rating conference call with Moody’s for May 20.
When asked for an update yesterday, Iulogologo said ASEDA has pushed back its attempt to refinance the bonds because of the sudden turn in the market.
He added that the Bond counsel and advisors will inform the ASEDA board when the time is right to try again.
In the meantime, he said ASEDA had an investor call scheduled for early this morning.
Tuala-uta Representative Larry Sanitoa has been asking for a hearing with the ASEDA Board to explain their plans for the 2020 Bond Series.
He said he understands the intention to obtain a lower interest rate, but if the term is extended he said, “we may end up paying more in the long run.”
The total bond debts for the 2015 Bond Series B and C is $22 million.
