Puerto Rico plans to sell a $900 million tax and revenue anticipation note within the next 30 days, according to source familiar with the plan.
JPMorgan will be the underwriter and is shopping the deal around now, the source said.
This is a cash flow note to address the fact that that fiscal year general fund revenues come in bulk in the fourth quarter, though expenses are even throughout the fiscal year, the source said. Puerto Rico has done this for decades, he said.
In September 2013 Puerto Rico sold a $125 million TRANS with a maturity on June 30. That same month it sold a $295 million public improvement note with a maturity in December 2013. It also sold a $35 million general obligation note with a maturity in December 2013.
Puerto Rico in March sold a $3.5 billion general obligation bond, the largest speculative grade municipal bond in United States history.
Gov. Alejandro García Padilla said at the time: "I am pleased to announce the issuance of bonds necessary to meet the obligations of the government for the next 18 months has been completed successfully."
Puerto Rico officials have also spoken about the possibility that the island's municipalities would sell a $500 million bond during the current fiscal year backed by their share of the sales tax.
