Aug 11 (Reuters) - Puerto Rico’s water authority has filed to sell $750 million in revenue bonds to fund various system improvements and refinance loans provided by local banks and the island’s development bank, according to an offering document.
The preliminary offering statement from the Puerto Rico Aqueduct and Sewer Authority, or PRASA, dated Aug. 10, came just days after Puerto Rico failed to make a full payment due on bonds sold by its Public Finance Corp. The partial payment is considered a default by its creditors and ratings agencies, the first ever by the U.S. territory.
PRASA is trying to raise the funds in part to try to comply with a consent decree with the U.S. Environmental Protection Agency to upgrade its aging system. (Reporting By Dan Burns; Editing by Meredith Mazzilli)