{"id":340889,"date":"2021-03-25T06:00:26","date_gmt":"2021-03-24T20:00:26","guid":{"rendered":"https:\/\/www.saipantribune.com\/?p=340889"},"modified":"2021-03-25T06:00:26","modified_gmt":"2021-03-24T20:00:26","slug":"success-of-guam-refunding-bond-sale-seen-as-proof-of-investor-confidence","status":"publish","type":"post","link":"https:\/\/www.saipantribune.com\/index.php\/success-of-guam-refunding-bond-sale-seen-as-proof-of-investor-confidence\/","title":{"rendered":"Success of Guam refunding bond sale  seen as proof of investor confidence"},"content":{"rendered":"<p><strong>HAG\u00c5T\u00d1A, Guam<\/strong>\u2014The Government of Guam proved again that Guam\u2019s bonds are a sound investment for bondholders after the Guam Hotel Occupancy Tax refunding bond sale last Friday exceeded all expectations in refunding the Series 2011 Hotel Occupancy Tax Bonds, with savings in the current fiscal year in excess of $3 million to be dedicated to Guam\u2019s tourism recovery efforts as well as significant debt service savings over the next several years.<\/p>\n<p>Amid the COVID-19 pandemic and its adverse impacts on hotel credits, Team Guam remained undeterred and committed two weeks to engage in investor calls to answer inquiries about Guam and the overall economy before the bond sale. As a result, GovGuam\u2019s HOT Refunding Bonds Series 2021A received strong investor demand with $1.06 billion in total orders placed by 24 different investors. Of those investors, 10 firms placed orders for the entire series of bonds.\u00a0<\/p>\n<p>The Guam HOT bonds received a positive investor response, which created an opportunity for Team Guam to lower the interest rates twice during the bond pricing process, going from an initial indicative pricing level of 3.42% to a final All in True Interest Cost of 3.23%. This overall effort allowed GovGuam to refund $72.3 million in existing bonds with $58.9 million of refunding bonds, a Net Present Value savings of $19 million. The HOT Bond closing is scheduled for the late hours of March 31, 2021.\u00a0<\/p>\n<p>\u201cWe are pleased with the results of the HOT Bond Sale as it provides significant savings over the life of the bond and fiscal resources for Guam\u2019s tourism recovery. The tremendous response is evidence that bond investors are confident in the future of Guam and our ability to rebound after this global pandemic,\u201d said Gov. Lou Leon Guerrero.\u00a0<\/p>\n<p>\u201cGovernor Leon Guerrero and I want to congratulate our fiscal team and the Guam Visitors Bureau on a job well done. The savings we will realize from this bond sale is part of the foundation for our recovery, and we are committed to continuing our efforts to rebuild a stronger Guam,\u201d added Lt. Gov. Josh Tenorio.\u00a0<\/p>\n<p>\u201cThe refunding of the HOT bonds is great news for our island and our number one industry,\u201d said GVB vice president Dr. Gerry Perez. \u201cWe look forward to dedicating the total savings realized from this transaction to aid in our economic recovery plans during this pandemic.\u00a0<strong>(PR)<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>HAG\u00c5T\u00d1A, Guam\u2014The Government of Guam proved again that Guam\u2019s bonds are a sound investment for&#8230;<\/p>\n","protected":false},"author":28,"featured_media":330356,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[51],"class_list":["post-340889","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-local-news","tag-guam"],"_links":{"self":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/340889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/comments?post=340889"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/340889\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media\/330356"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=340889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=340889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=340889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}