August 2, 2012

Oklahoma state agency approves funds for soy protein processor project

Oklahoma's state agency approved a US$4.35 million financial deal on Friday (July 27) to give a US$30 million expansion project for a soy protein processor in Pryor a boost.

The approval by the state Council of Bond Oversight authorises the Oklahoma Development Finance Authority to issue a revenue note for the Solae plant in the Mid-America Industrial Park.

Michael Davis, president of the Oklahoma Industrial Finance Authority, said the deal allows Solae to construct a building and make machinery and equipment updates.

The Pryor plant, which has 178 employees, is expected to add 48 jobs by the third year of the expansion.

Solae, which is owned by DuPont, will buy the US$4.35 million note and then will be repaid by the state over the next 10 years with state withholding taxes collected from the Pryor plant employees, Davis said.

More than enough money is coming in from the withheld taxes to make the payments; the annual debt service is projected at US$445,306 and the estimated annual withholding for current Solae employees is US$468,314, with that increasing to US$595,103 after the expansion.

The Oklahoma Development Finance Authority gave its approval to the arrangement earlier this week. The note agreement will have a 2% fixed rate of interest, according to papers provided to Council of Bond Oversight members. It represents about 14% of the US$30 million project.