News Story

COFINA ANNOUNCES RECEIPT OF ALL SALES AND USE TAXES OWNED FOR THE THIRD CONSECUTIVE YEAR

COFINA also publishes Audited Financial Statements for Fiscal Year 2021 and praises Supreme Court Decision not to hear last appeal challenging the validity of the COFINA Plan of Adjustment

(October 18, 2021 - San Juan, Puerto Rico) - The Puerto Rico Sales Tax Financing Corporation (“COFINA”) confirmed that sales and use taxes received and deposited between July 1, 2021 and October 15, 2021 with The Bank of New York Mellon (“BNY”), as Trustee for the COFINA bonds, total $472,651,346 (“COFINA Revenues”), which equals the amount of sales and use taxes owned by COFINA for fiscal year 2022. This marks the third time since the restructuring of COFINA’s bonds, pursuant to Act 241-2018 and COFINA’s Third Amended Title III Plan of Adjustment (the “COFINA Plan of Adjustment”) confirmed by the U.S. District Court for the District of Puerto Rico pursuant to Title III of the Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”), that COFINA receives the sales and use taxes which were determined to be its property.

On fiscal years 2020 and 2021, the total COFINA Revenues owned by COFINA for such periods ($436,992,738 and $454,472,448, respectively) were received and deposited with BNY between July 1, 2019 and November 21, 2019 and between July 1, 2020 and October 19, 2020, respectively.

“COFINA’s independent Board of Directors and its management are pleased that this milestone was achieved for the third consecutive year, as it evidences COFINA’s successful restructuring” said Carlos M. Yamín, COFINA’s Executive Director.

COFINA also announced that it has received and released the completed audit of its financial statements for fiscal year 2021 and has posted the audit on the Municipal Securities and Rulemaking Board Electronic Municipal Market Access website (“EMMA”). The completion of the audit in the month of October for its fiscal year ended June 30th for the second consecutive year continues to demonstrate COFINA’s commitment to transparency and meeting its obligations to its bondholders. Under the leadership of its board of independent directors, COFINA has become the first issuer in the Commonwealth of Puerto Rico to publish its fiscal year 2021 audited financial statements.

Additionally, COFINA announced that, on October 4, 2021, the U.S. Supreme Court denied the Petition for a Writ of Certiorari presented by COFINA’s junior bondholders on April 2, 2021 challenging the validity of the COFINA Plan of Adjustment under PROMESA.

The petition challenged the United States Court of Appeals for the First Circuit’s decision to uphold Judge Laura Taylor Swain’s order confirming the COFINA Plan of Adjustment. The First Circuit’s March 2, 2021 decision concluded that efforts to revoke the COFINA Plan of Adjustment were barred under the doctrine of equitable mootness because the plan has already been implemented. The U.S. Supreme Court’s decision conclusively resolves the last remaining challenge to the COFINA Plan of Adjustment.

“COFINA’s independent Board of Directors and its management are pleased that the U.S. Supreme Court decided not to hear the last appeal challenging the validity of the COFINA Plan of Adjustment. The Court’s decision marks the end to possible challenges to the COFINA Plan of Adjustment and reaffirms the Corporation’s successful restructuring,” added Mr. Carlos M. Yamín, COFINA’s Executive Director.

For additional information please visit COFINA’s website at www.cofina.pr.gov.

Forward-Looking Statements

This press release includes forward-looking statements, which include, but are not limited to, expectations with respect to the COFINA Bonds. The Fiscal Agency and Financial Advisory Authority (“AAFAF”) and COFINA cannot provide assurances that the future developments affecting AAFAF, COFINA, or the bonds will be as anticipated. Actual results may differ materially from those expectations due to a variety of factors. Any forward-looking statement made in this release speaks only as of the date hereof and AAFAF and COFINA do not undertake any obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.