The Arizona Republic - June 1, 2010
More state buildings go up for sale next week, as officials hope to raise $300 million by selling and then leasing back the schools for deaf and blind children, more state prisons and other structures in an attempt to raise $300 million.
It's the second time this year that the state has sold off buildings to help close the state budget deficit. A sale-leaseback in January raised $735.4 million for the state. The healthy response prompted lawmakers to authorize a second sale.
The sale will be conducted June 8, and investors will be required to make purchases in $5,000 installments, according to information on the Arizona Department of Administration's Web site.
Investors must work through a list of underwriters provided by the state.
The sale-leaseback comes on the heels of last week's action in which the state borrowed $450 million against the proceeds of future state Lottery revenues. Those bonds carried an interest rate of 4.27 percent.
Next week's sale-leaseback is expected to carry a similar interest rate, said Michael Smarik, deputy state comptroller, although the rate won't be set until next week.
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