The Government Development Bank for Puerto Rico sold $350 million in tax and revenue anticipation notes late on Thursday.
According to the Electronic Municipal Market Access site, the GDB plans to settle the two notes on Friday.
One of them was a senior note, 2015 series B-1A, with a par value of $319 million. It has a yield of 7.75% and an initial offering price of 100 cents on the dollar. The notes are guaranteed by the Commonwealth of Puerto Rico.
These notes mature June 30, 2015.
A spokesman for the GDB said the notes would have JPMorgan as the underwriter.
The second note is a variable rate senior note, 2015 series B-2B, with a par value of $30,555,000. It has an initial offering yield of 7.7% and an initial offering price of 100 cents on the dollar. They are also guaranteed by Puerto Rico and mature on June 30.
Reuters reported that Bank of America Merrill Lynch was the lead underwriter for this note.
Puerto Rico also expects that on Tuesday the GDB to sell a fixed rate note with a maturity on June 30 and a variable rate note with a maturity on June 15, according to its postings on EMMA.
Finally, Puerto Rico expects the GDB to sell a fixed rate note on Nov. 13 with a maturity on June 30.
The GDB has stated that it intends to sell $900 million of notes this fall to keep Puerto Rico's government operating. The government's spending is spread out fairly evenly over the fiscal year, whereas most of its tax revenues come in late in the fiscal year, necessitating the sale of the notes.
