Finance: Virgin Islands

The Virgin Islands Port Authority (VIPA) has successfully closed on a bond financing. Specifically, it refunded Marine Revenue Bonds, Series 2003A (AMT) and C (tax-exempt) in the amount of $24.5 million. Standard &Poor’s has assigned an unenhanced rating for the Virgin Islands Port Authority Marine Revenue Bonds of "BBB " with a stable outlook.

Separately, the VIPA used internal cash to pay off its 2003 Marine Revenue Bonds, Series B (taxable). The financing was completed in three series and included an AMT, tax-exempt and taxable component.

In addition to refunding the 2003 Marine Bonds, the completed financing raised an additional $29.0 million, which will be used for much needed capital maintenance and enhancements to its facilities. VIPA received $75 million in orders for its $48.6 million dollar bond offering. According to VIPA, the True Interest Cost on the offering of 3.84% represents the lowest interest rate ever received in the U.S. Virgin Islands on a bond financing. VIPA will save about $2.4 million on the bonds refinanced.

VIPA will now be able to fund several capital port projects throughout the territory, including:

St. Croix:

Structural repairs, pavement resurfacing and cross channel dredging at the Wilfred Allick Port and Transshipment Center.
Refurbishment of the south tender landing at the pier of the Ann E. Abramson Marine Facility in Frederiksted.
Refurbishment of the Gallows Bay Marine Terminal, bulkhead and dredging of the Schooner Bay Channel to facilitate the berthing of small cruise ships in Christiansted.
Pavement resurfacing and shoreline restoration at the Ovesen Seaplane Facility.

St. John:

Develop a paid parking facility in Cruz Bay.
Pave the cargo area at the Theovald Moorehead Dock and Terminal.

St. Thomas:

Dredging East Gregorie Channel to accommodate the largest cruise lines in Crown Bay.
Construct a US Customs and Border Protection Facility and a multi-level parking garage at the Urman Victor Fredericks Marine Terminal in Red Hook.

"This is a significant advancement for the Port Authority," said VIPA Executive Director Executive Director Carlton Dowe. "It is critical for us to maintain and upgrade our port infrastructure which facilitates travel, business and commerce for the entire territory. The fact that we were able to close on the bonds at such a low interest rate is historic in the Virgin Islands and speaks volumes about the proficiency of VIPA’s financial team and the port authority’s governing board of directors."