Arkansas Development Finance Authority
For Immediate Release
July 1, 2016
Contact: Public Finance Officer Ro Arrington - 501-682-5910 email: email@example.com
Public Information Officer Derrick Rose - 501-692-5904 email: firstname.lastname@example.org
Bond Refunding Saves State of Arkansas $7.2 Million
LITTLE ROCK, JULY 1, 2016 - The Arkansas Development Finance Authority, on behalf of the State of Arkansas, has taken advantage of the recent rise in the bond market following Britain's vote to exit the European Union. The $83,120,000 State of Arkansas Higher Education General Obligation Bonds Taxable Refunding Series 2016, was originally scheduled to be priced on Thursday, June 23, but state officials delayed the sale to avoid market uncertainty until Tuesday, July 28. In doing so, the State of Arkansas realized a net present value savings of over $7.2 million.
"We were fortunate on the timing of this bond issue," said ADFA President Aaron Burkes. "ADFA will continue to explore refinancing opportunities for all of the State's bond issues"
The (taxable) new bonds have an average life of 3.7 years and a net interest cost 1.51%. The proceeds of the Bonds will be used to advance refund the Authority's previously issued and outstanding State of Arkansas Higher Education General Obligation Bonds, Series 2007A which were issued to finance capital improvement projects for State institutions of higher education.
The bond sale follows a review of the State's bond rating by S & P Global Ratings earlier this month. Arkansas maintains a "AA/Stable" rating which is reflective of the State of Arkansas's balanced budget and low unemployment.