Derrick Rose, Communications Manager
Office: (501) 682-5904

Gene Eagle, Vice President, Development Finance
Office: (501)682-5909

December 10, 2008 – The Arkansas Development Finance Authority (ADFA) Bond Guaranty Program was created to provide long-term financing for businesses expanding employment opportunities in Arkansas. It is a proven method of financing capital assets for growth oriented Arkansas businesses that need expansion capital.

As a statewide issuer that can pool projects from all areas of the state into one larger pooled bond issue, all projects participating in a bond issue receive cost savings.

On December 17 , ADFA closed a $13,130,000 pooled bond issue to provide permanent long term financing for seven manufacturers locating in or expanding their facilities in Arkansas. These companies were financed through ADFA's and the Arkansas Economic Development Commission’s Industrial Development Bond Program which allows our organizations to expand Arkansas' industrial base and create employment by offering favorable tax-exempt and taxable interest rates. The latest financing features a combination of taxable and tax-exempt bonds with interest rates ranging from 5.75% to 6.24% guaranteed in total or in part by ADFA and the AEDC.

The following is a description of the manufacturers included in this financing and their respective loan amounts:

• America’s Choice Products located in Newport, AR, will use the proceeds of a taxable, $3.52 million, 10-year loan, to purchase equipment for a footwear manufacturing facility.
  
  
• Art-exchange.com, inc. located in Hot Springs, AR, will use the proceeds of a taxable, $1.635 million, 15-year loan, to purchase, renovate and expand an existing manufacturing facility.
  
  
• Nulyne Forest Wood Products, Inc. located in Knoxville, AR, will use the proceeds of a taxable, $1.4 million 10-year loan, to purchase and install equipment in a pallet manufacturing facility.
  
  
• Sage V Foods, LLC, located in Stuttgart, AR will use the proceeds of a taxable, $2.465 million, 12-year loan, to purchase a new dryer and construct a 10,000 square foot racked warehouse.
  
  
• TPC Development, LLC, located in Russellville, AR, will use the proceeds of a taxable, $3 million, 15-year loan, to renovate and refund debt on an existing facility to create a call center.
  
  
• Prime-Line, Inc., located in the Jones Mill Industrial Park in Malvern, AR, will use the proceeds of a tax-exempt, $610,000, 8 year loan to purchase equipment for an interior door and architectural molding manufacturing facility.
  
  
• Arkansas Association of Development Organizations, Inc., located in Lonoke, County, AR, will use the proceeds of a tax-exempt, $500,000, 20-year loan to purchase and renovate an existing facility.

The ADFA is rated "A+" plus and has recently changed its outlook to positive. ADED programs are rated "A" by Standard and Poors Corporation. This gives our agencies the ability to creatively use national and global markets to import development finance capital into Arkansas.