Richland County is expected to come to market this week with $8.8 million of variable-rate demand bonds for recovery zone facilities.
The revenue VRDBs are being issued on behalf of Minn-Dak Farmers Cooperative, a Wahpeton, N.D.-based co-op consisting of 4,757 sugar-beet growers as members. Some of the members are located in Minnesota.
The debt is backed by a direct-pay letter of credit from CoBank, ACB.
The bonds initially bear interest at a weekly rate but may be converted to a fixed-rate mode, according to Fitch Ratings, which rates the debt AA-minus.
Bond proceeds will be used to acquire and install equipment to help process sugar from sugar beets. Members use the company’s facilities to process their sugar beets into sugar and other products.
