Puerto Rico Sales Tax Financing Corporation (COFINA)
The Puerto Rico Sales Tax Financing Corporation (“COFINA”, for its Spanish acronym) is a public corporation of the Government of Puerto Rico created pursuant to Act No. 91-2006, as amended. COFINA was originally created for the purpose of financing the payment, retirement or defeasance of certain debt obligations of the Government of Puerto Rico. On November 15, 2018, Governor Rosselló Nevares signed into law Act No. 241-2018, which amended and restated Act No. 91-2006 to establish a legal framework for the restructuring of COFINA’s issued and outstanding bonds.
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Audited Financial Statements
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Annual Financial Information
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On May 5, 2017, the Financial Oversight and Management Board for Puerto Rico (“FOMB”), at the request of Governor Rosselló Nevares, commenced a Title III case for the Puerto Rico Sales Tax Financing Corporation (“COFINA”, for its Spanish acronym) by filing a petition for relief pursuant to Section 304(a) of PROMESA, 48 U.S.C. § 2164(a), in the United States District Court for the District of Puerto Rico (the “District Court”). As such, COFINA became a debtor in a proceeding under the Title III of PROMESA, 48 U.S.C. § 2161, et seq. Pursuant to Section 315(b) of PROMESA, 48 U.S.C. § 2175(b), the FOMB serves as COFINA’s representative in its Title III proceeding. COFINA’s Title III proceeding is being jointly administered with the Commonwealth’s Title III proceeding for procedural purposes only in the United States District Court for the District of Puerto Rico under Case No. 17-BK-03283-LTS. The case docket can be accessed for free by clicking here.
On January 16 and 17, 2019, the District Court held an evidentiary hearing to consider the confirmation of the Third Amended Title III Plan of Adjustment of Puerto Rico Sales Tax Financing Corporation (the “Plan”).
On February 5, 2019, the District Court entered the Amended Memorandum of Findings of Fact and Conclusions of Law in Connection with Confirmation of the Third Amended Title III Plan of Adjustment of Puerto Rico Sales Tax Financing Corporation [ECF No. 5047] (the “Memorandum”) and the Amended Order and Judgment Confirming the Third Amended Title III Plan of Adjustment of Puerto Rico Sales Tax Financing Corporation [ECF No. 5048] (the “Confirmation Order”). Pursuant to the Memorandum and Confirmation Order, the Plan was confirmed pursuant to Section 314(b) of PROMESA.
On February 12, 2019 (the “Effective Date”), the Plan became effective. On the Effective Date, pursuant to sections 19.1 and 19.5 of the Plan, COFINA fulfilled its Plan obligations by distributing, or causing to be distributed, Cash and COFINA Bonds to The Bank of New York Mellon, in its capacity as trustee and paying agent, in connection with the Existing Securities (“BNYM”). BNYM distributed the Cash and COFINA Bonds to The Depository Trust Company (“DTC”), which is the Bond owner as defined in the Plan. COFINA Bonds and Cash were allocated by DTC to participants in accordance with the allocation procedures described in a notice of distribution to holders filed by BNYM in the Electronic Municipal Market Access system on February 12, 2019. Participants and nominees (as applicable) are responsible for allocating the COFINA Bonds and Cash they receive to beneficial holders.
Capitalized terms used but not otherwise defined here have the meanings ascribed to such terms in the Plan, which can be found here.
For more information visit the Financial Oversight & Management Board for Puerto Rico.