SOURCE: Puerto Rico Housing Finance Authority

July 05, 2011 17:48 ET

Puerto Rico Housing Finance Authority Announces Acceptance of Tenders in Tender Offer

SAN JUAN, PUERTO RICO--(Marketwire - Jul 5, 2011) - Puerto Rico Housing Finance Authority (the "Authority") today announced that it has accepted to purchase for cash its Mortgage Trust III Collateralized Mortgage Obligations, Series A, Class Z-2 Bonds, maturing on or after January 1, 2012 and on or before January 1, 2021 (the "Class Z-2 Bonds"), originally issued by its predecessor, Puerto Rico Housing Finance Corporation, under the Trust Indenture, dated as of December 1, 1990, as amended, between the Authority and Banco Popular de Puerto Rico, as successor trustee, as identified in the table below. The Class Z-2 Bonds were subject to an offer to purchase (the "Offer"), the terms and conditions of which are set forth in the Invitation to Tender Certificated Bonds for Cash and the Invitation to Tender Book-Entry Bonds for Cash, dated as of June 9, 2011 (collectively, the "Invitation"). The Offer expired at 5:00 p.m., Puerto Rico time, on June 30, 2011 (the "Expiration Date").

CUSIP Maturity Date Amount of Class Z-2 Bonds Tendered Amount of Class Z-2 Bonds Accepted
74527PBE2 January 1, 2012 $10,315,000 $10,315,000
74527PBF9 July 1, 2012 7,120,000 7,120,000
74527PBG7 January 1, 2013 15,715,000 15,715,000
74527PBH5 July 1, 2013 6,050,000 6,050,000
74527PBJ1 January 1, 2014 7,910,000 7,910,000
74527PBK8 July 1, 2014 8,205,000 8,205,000
74527PBL6 January 1, 2015 - -
74527PBM4 July 1, 2015 8,125,000 8,125,000
74527PBN2 January 1, 2016 16,485,000 16,485,000
74527PBP7 July 1, 2016 - -
74527PBQ5 January 1, 2017 8,905,000 8,905,000
74527PBR3 July 1, 2017 11,670,000 11,670,000
74527PBS1 January 1, 2018 9,415,000 9,415,000
74527PBT9 July 1, 2018 13,345,000 13,345,000
74527PBU6 January 1, 2019 6,505,000 6,505,000
74527PBV4 July 1, 2019 1,345,000 1,345,000
74527PBW2 January 1, 2020 2,660,000 2,660,000
74527PBX0 July 1, 2020 9,030,000 9,030,000
74527PBY8 January 1, 2021 12,380,000 12,380,000

Based on the count by Bondholder Communications Group LLC, the tender and information agent for the Offer, as of the Expiration Date, $155,180,000 aggregate principal amount of Class Z-2 Bonds was validly tendered in the Offer. In accordance with the terms and conditions of the Offer to Purchase, the Authority has accepted to purchase for cash $155,180,000 aggregate principal amount of those Class Z-2 Bonds validly tendered in the Offer. In determining which Class Z-2 Bonds to accept for purchase, the Authority followed the methodology set forth in the Invitation.

The consideration to be paid to bondholders of Class Z-2 Bonds accepted by the Authority in the Offer will be paid in the amounts and in accordance with the terms set forth in the Invitation, which payment is still expected to occur on the settlement date of July 7, 2011. All tendered Class Z-2 Bonds accepted for purchase will be cancelled on the settlement date.

The Offer is subject to a number of conditions that must be satisfied, including but not limited to, the condition that the Authority is able to obtain the requisite cash necessary to complete the Offer via financing from Government Development Bank for Puerto Rico, all as more fully described in the Invitation.

Popular Securities, Inc. acted as the dealer manager for the Offer.

Bondholder Communications Group LLC acted as the tender and information agent for the Offer.

This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase any Class Z-2 Bonds.

Forward-Looking Statements

All forward-looking statements in this press release, such as the schedule settlement date of the Offer, are based on current expectations. Such press release contains forward-looking statements involve a variety of business risks and other uncertainties that could cause actual results to differ materially. Words such as "expects," "intends," "plans," "projects," "believes," "estimates" and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecast in these forward-looking statements. Forward-looking statements speak only as of the date made. There is no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date as of which they are made. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements included in this release or that may be made elsewhere from time to time by, or on behalf of, the Authority.