Tax refunds to be distributed first week of December
FOR IMMEDIATE RELEASE
November 16, 2011
(New York, New York) The $235 million of tax refund bonds sold on Wall Street. The tax refunds and a portion of the COLA awards will be released in the first week of December.
“I am delighted with the news from New York. The market reception for the BPT bonds sends a strong message that our decision to pay out the tax refunds is being acknowledged as an important element of our overall fiscal stabilization plan,” Governor Eddie Baza Calvo said.
After a two-week investor road show, the Governor, key members of his administration, and representatives of GEDA met individually and in groups with 19 institutional accounts of which over half submitted orders totaling $305.6M. This strong reception from the bond market is directly associated with the pre-marketing efforts led by Governor Calvo. With the subscription window set to open for 90 minutes, it only took about 60 minutes for over one billion dollars in orders to be received. The competition for the bonds was so great that the final interest cost came in at a record low of 4.94%.
To put this into perspective, the government of Guam has been paying an average of 6.27% in interest for overdue tax refunds since 1998.
This story is developing. Please stay tuned for more information from New York as it becomes available.
Please call Troy Torres at 475-9304 or 486-8887 for more information.