Springdale, Arkansas is located in the Northwest part of the state among industry giants such as Wal-Mart, JB Hunt and Tyson Foods as well as the University of Arkansas, the state’s flagship university. Like so many Arkansas communities, Springdale has utilized Sales Tax Revenues to fund capital improvements through the issuance of municipal bonds. With the continued growth of its community, Springdale is always paying close attention to needed capital projects and its ability to refinance existing debt to save money and provide more funds for future growth.
Crews provided to the City a refinancing opportunity that would produce in excess of $12 million in interest cost savings; however, it would have lengthened the time before the City could use the tax for additional planned projects. The City asked for a solution to capture the interest savings while allowing the use of the tax in the near future.
Working with the City, Crews provided a refinancing structure to capture interest savings and allow the tax to be used in the near future by utilizing a shorter redemption covenant. The City was able to generate an additional $157 million in improvements in the subsequent bond issue.
Crews worked hard to serve our client in extraordinary ways by: