Pago Pago, AMERICAN SAMOA — The American Samoa Economic Development Authority (ASEDA) is trying to refinance its current bonds at the lower interest rates— taking advantage of the bond market at this time, says ASEDA board member Iulogologo Joseph Pereira, responding to Samoa News inquiries following ASEDA’s public notice on the proposed 2020 bond series.

The notice, published in the Samoa News, states that the ASEDA board on Apr. 16th adopted a resolution in which it authorized the issuance of the Issuer’s General Revenue Refunding Bonds, Series 2020 in an aggregate principal amount not to exceed $26,000,000 (with such additional or other title and/or series designation(s) as may be determined by the officers of the Issuer).

“ASEDA is not selling new bonds, we are trying to refinance our bond at lower interest rates to take advantage of the bond market at this juncture,” Iulogologo said in responses to Samoa News questions. ”This action will reduce our monthly bond payments. “

“We have to follow the same process as if we are selling new bonds. This means we have to go through the Bond Rating Process again to determine what type of ratings we will get upon which our bond interest rates will be predicated,” he said.

Iulogologo said the bond rating presentation with Moody’s is set for May 20th.

According to the ASEDA public notice, the “Series 2020 Bonds”, are to mature in not more than 25-years from their date or dates, to be sold at a price not less than 96% of the total principal amount thereof, and to bear interest at a maximum net effective rate or rates not to exceed 9% per annum.

Additionally, the Series 2020 Bonds will be issued for the purpose of:  

•     refunding the issuer’s outstanding General Revenue Bonds Series 2015B and its General Revenue and Refunding Bonds Series 2015C,

•     funding a deposit to a Debt Service Reserve Fund, if necessary and

•     paying the costs of issuance of the Series 2020 Bond.

It also says that Series 2020 bonds will be payable solely from and secured solely by a pledge of the revenues and certain funds and accounts, including 100% of the pledged taxes, all net revenues from projects financed with bonds issued, and all revenues from any other source of funds legally available to ASEDA to pay debt service on bonds.

Interested persons have the right to file any contest in the High Court of American Samoa within 20 days from the date of publication of the bond issue notice, which was April 16.