Matching Fund Special Purpose Securitization Corporation
Act 8540, which was signed into law on February 8, 2022, created the Matching Fund Special Purpose Securitization Corporation (“MFSPSC”), a special purpose independent and autonomous corporation and government instrumentality of the Virgin Islands for the limited purpose of:
(a) acquiring during the Transfer Period (as defined in the Act) (x) all of the right, title and interest in the Matching Fund Receipts (as defined in the Act) that would have been paid to the Government and (y) the Related Rights (as contained in the Act); and
(b) issuing Matching Fund Securitization Bonds and the Residual Certificate (both as defined in the Act) in order to pay a portion of the purchase price for the Matching Fund Receipts and the Related Rights.
On April 6, 2022, the MFSPSC issued $952,825,000 Matching Fund Securitization Bonds consisting of $930,315,000 Series 2022A triple-tax-exempt bonds and $22,510,000 Series 2022B federally taxable bonds (together, the “Bonds”). Proceeds of the Series 2022A Bonds were used to (i) fund the purchase of all the PFA Bonds to be Refunded that are validly tendered pursuant to the Tender Offer and to pay a portion of the cost of redeeming and/or defeasing certain of the PFA Bonds to be Refunded that are not purchased pursuant to the Invitation, and (ii) pay the costs of issuance of the Series 2022A Bonds. Proceeds of the Series 2022B Bonds were used to pay (i) the cost of redeeming and/or defeasing certain of the Untendered PFA Bonds to be Refunded and (ii) the costs of issuance of the Series 2022 Bonds. In addition, proceeds of the Series 2022 Bonds were used to pay Capitalized Interest on a portion of the Series 2022 Bonds.