State completes sales-leaseback deals for cash - East Valley Tribune: East Valley Local News

State completes sales-leaseback deals for cash

Print
Font Size:
Default font size
Larger font size

Posted: Thursday, January 14, 2010 2:56 pm | Updated: 3:39 am, Sat Oct 8, 2011.

The state has completed sale-leaseback financing deals for state properties to get cash needed to pay Arizona's bills through February.

Department of Administration spokesman Alan Ecker says the state successfully sold a planned $735 million of certificates of participation on the municipal bond market on Tuesday and Wednesday.

The sale-leaseback financing effectively constitutes borrowing, using prisons and other state properties as collateral.

The Legislature and Gov. Jan Brewer included the sale-leaseback mechanism in its current $8.4 billion budget, which still faces a shortfall of at least $1.4 billion.

The Department of Administration has said it expects to get the $735 million by Jan. 26, in time to pay February paychecks and other bills.

  • Discuss

Video: Wilkins Learning Center's Success with Best of Gilbert

Business has soared at the Wilkins Learning Center after being named "Best Preschool" in the E...

Facebook

EastValleyTribune.com on Facebook

Twitter

EastValleyTribune.com on Twitter

Google+

EastValleyTribune.com on Google+

RSS

Subscribe to EastValleyTribune.com via RSS

RSS Feeds

Spacer4px
Your Az Jobs