Public Finance

Paving the Road to a Stronger Arkansas

Flawless execution led to the success of two competitively sold transactions for the Arkansas Highway and Transportation Department.

In 2013, Stephens served as financial advisor to the Arkansas Highway Commission on two issues, both executed using a competitive sale.

Arkansas General Obligation Four-Lane Highway
Construction and Improvement Bonds

This issue, completed in September, will be paid from the collection of a 0.5% sales and use tax. Structured with annual principal payments commencing June 2014 and concluding June 2023, the bonds attracted six bidders. The winning bid was 3.116% with a cover bid of 3.127%. The spread between the top and the bottom bids was approximately 10 basis points.

Arkansas Federal Highway
Grant Anticipation and Tax Revenue Bonds

This issue is secured by Interstate Maintenance Revenues and Diesel Fuel Revenues instead of relying on repayment of the underlying loans to cities or municipal subdivisions for debt service payments. It was structured with semiannual principal and interest payments commencing in April 2015 and concluding October 2025. The winning bid was 2.153% with a cover bid of 2.157%. The spread between the top and the bottom bids was approximately nine basis points.

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