Arkansas Development Finance Authority
Derrick Rose, Communications Manager
Office: (501) 682-5904
Gene Eagle, Vice President, Development Finance
FOR IMMEDIATE RELEASE
ADFA Pooled Bond Issue Helps Arkansas Industries
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:
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.
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