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

State completes sales-leaseback deals for cash

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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.

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