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The Virgin Islands Hotel Development Financing Corp. is offering $448 million in bonds to finance the acquisition of two resorts on the island.
Proceeds will be used to acquire The Westin St. Thomas Beach Resort & Spa, and the Buoy House Beach Resort. Fee simple ownership of the properties will revert to the government of the Virgin Islands once the Series 2025 bonds are paid off, according to documents on MuniOS.
The offering will consist of $272 million of Senior Lien Series 2025 A-1 bonds, as well as $164 million of Subordinate Lien Series 2025 B bonds. Interest from these bonds is exempt from federal and Virgin Islands taxes. The offering also includes $12 million of federally taxable Senior Lien Series 2025 A-2 bonds. The serial bonds will fully mature on Dec.1, 2055.
The bonds will be secured by revenue from the hotels, as well as interests in the properties and payments from received under a developer's note after previously issued bonds are redeemed.
The facilities, located at Frenchman's Reef, will be acquired from CREF32 USVI hotel Holdings. The Westin Beach Resort consists of 392 guestrooms, four restaurants, three pools, and other amenities. Buoy Haus is a 94 guestroom facility, which includes five beach house villas, two honeymoon suites and a ballroom.
The Virgin Islands Hotel Development Financing Corp. is a special purpose public corporation and government instrumentality of the Virgin Islands, organized to issue bonds for public improvements and other public undertakings.
Piper Sandler is listed as the offering's manager.
