The American Samoa Economic Development Authority (ASEDA) has issued notice of its intent to sell two new bond series.
A notice from ASEDA says the Board of Directors adopted a resolution on October 15, 2015 authorizing the sale of the two new bond series.
According to the notice General Revenue Refunding Bonds Series 2025A is intended to raise an amount not to exceed $50 million to mature in 11 years from their date of sale. The proceeds will be issued for the purpose of refinancing ASEDA’s outstanding General Revenue and Refunding Bonds Series 2015A, funding a deposit to a Debt Service Reserve Fund if necessary and paying the costs of issuance of the Series 2025 Bonds.
The second bond series, 2025B Bonds, is intended to raise $15 million to mature in not more than 21 years. Proceeds from that sale will go towards paying for any portion of the completion of the Fono building, including fixtures, furniture, and equipment, construction of a new adult correctional facility and financing a portion of the American Samoa Telecommunications Authority’s investment in internet capacity and redundancy, funding a deposit to a Debt Service Reserve Fund if necessary and paying the costs of issuance of the Series 2025 bonds.
The Series 2025 bonds are to be secured by a pledge of the revenues and certain funds and accounts including but not limited to 100% of the pledged taxes, all net revenues from projects financed with the bonds and all revenues from any other source of funds legally available to ASEDA to pay debt service on bonds.
There is a 20-day period from the date of publication of the notice during which anyone can contest the legality of the resolution, or the Series 2025 bonds or any provision made for the security and payment of the Series 2025 bonds, by filing a complaint in the High Court of American Samoa.
The Chairman of the ASEDA Board, Senator Magalei Logovi’i, told KHJ News that there will be no increases in taxes, fees and charges currently designated for bond repayment.
