Calvo signs-off on bond refinancing - KUAM.com-KUAM News: On Air. Online. On Demand.

Calvo signs-off on bond refinancing

Posted: Updated:

It's set to save taxpayers tens of millions of dollars in debt payments over the long run. And after a month of heated debate by lawmakers and positive reviews by investors, Governor Eddie Calvo officially signed-off on the refinancing of the Government of Guam's general obligation bonds.

It's been described as an historic moment for Guam, with Governor Calvo saying, "It's exciting times and it's an honor and pleasure for me to be signing-off on these very successful bond transactions that occurred in the past week."

And today with his fiscal team and bond partners, the island's chief executive put pen to paper, signing-off on the closing of the refunding for GovGuam's 2007 and 2009 general obligation bonds. "A lot of what's happening around the world, there is instability, but at the same time, there are areas where there are strength. And people see Guam, they see it as stability. They see it as a place, that we may not get the interest that we once gotten for Guam, but it's safe and its secure, and that's what it's really all about."

Last week, Guam lowered its debt with the lowest interest rate for long-term bonds GovGuam has ever been assigned. The fiscal team was able to negotiate the sale of a $413 million bond at a 4% interest rate. Calvo added, "You understand how things have changed over these few years. When you see the tremendous amount of savings that has occurred as a result of that funding, I know we're looking at upfront close to $2 million for this fiscal year, $1.975 million, and then the term of the payout and there's been no extension in terms of the original 2007 and 2009 bonds. So we're looking at $45.3 million, so this I a tremendous win for the people of Guam."

On hand for the signing ceremony were bond trustee Bank of Guam, underwriting agencies Barkleys and CitiGroup and bond counsel Orrick. GEDA administrator John Rios says the funds from the refunding of the bonds will be transferred Thursday evening.

  • NEWS HEADLINESMore>>

  • Gubernatorial candidates face-off at GRMC healthcare forum

    Gubernatorial candidates face-off at GRMC healthcare forum

    This year's gubernatorial candidates faced off again in another forum, this time sponsored by GRMC. Healthcare was the focus, but the questions also covered a number of other topics. Dennis Rodriguez, Jr. said, "It doesn't matter if this is a private hospMore >>
    This year's gubernatorial candidates faced off again in another forum, this time sponsored by GRMC. Healthcare was the focus, but the questions also covered a number of other topics. Dennis Rodriguez, Jr. said, "It doesn't matter if this is a private hospMore >>
  • 45-year-old charged with stealing food truck

    45-year-old charged with stealing food truck

    A 45 year old man is behind bars charged with stealing a food truck. Anthony Peter Perez said he was only helping his nephew when he was confronted by police. The trailer reportedly belonged to a Mangilao family, but was located in Dededo. The truck is vaMore >>
    A 45 year old man is behind bars charged with stealing a food truck. Anthony Peter Perez said he was only helping his nephew when he was confronted by police. The trailer reportedly belonged to a Mangilao family, but was located in Dededo. The truck is vaMore >>
  • Regional monsoon weather won't directly affect Guam

    Bad regional weather won't directly affect Guam

    Get your umbrellas and rain gear out. A tropical disturbance south of Guam and moving west will leave us wet the rest of the week. National Weather Service Meteorologist Landon Aydlett said, "So the good news is it's not going to directly affect Guam andMore >>
    Get your umbrellas and rain gear out. A tropical disturbance south of Guam and moving west will leave us wet the rest of the week. National Weather Service Meteorologist Landon Aydlett said, "So the good news is it's not going to directly affect Guam and More >>
Powered by Frankly