Notice to Media

LITTLE ROCK (7-9) 

The Arkansas Highway Commission took bids for a bond issue of $215 million today for the five-year Interstate Rehabilitation Program, according to AHTD director Dan Flowers.

     The issue marks the third and final component of a $575 million highway bond package approved by voters in 1999.  The first sale of Federal Highway Grant Anticipation and Tax Revenue bonds was held in 2000 for $175 million. A bond sale of $185 million followed in 2001.

     “This is a historical moment for the Arkansas State Highway and Transportation Department,” noted John Lipton, Highway Commission chairman.  “We take pleasure in this successful bond sale, it will translate into better roads for the citizens of Arkansas and visitors to our state.”

     The firm of Stephens, Inc. submitted the best of five bids.  The bid reflected a true interest cost of 4.183%.  A premium of $10,728,000 was received on the bonds.  Bonds issued today will mature over a twelve-year period at various maturity dates starting on August 1, 2005.  The bonds will be repaid using federal Interstate Maintenance funds, state matching amounts and the proceeds from the four-cent per gallon increase in the state diesel tax in 1999.  

     According to Wayne Burggraaf of Evensen Smith, “This is the largest bond issue on the market for the week.  It is an excellent bid and will be wonderful for the rehabilitation program.”

     The Interstate Rehabilitation Program will improve Arkansas interstates over a five-year period, which began in 2000.  As of June of this year, 41 projects had been let to contract and eleven projects (78 miles) are complete.   The first projects were let to contract in May of 2000. 

                                                                        ###