Oklahoma’s Salina Economic Development Authority plans to issue $1.15 billion in revenue bonds through a Wisconsin agency to fund the construction of a tire factory in Tulsa, Okla.
The factory is projected to produce 4.3 million tires annually and create 500 jobs, according to a statement and roadshow material published Monday on MuniOS.
The goal is to make private-label tires and “displace a portion of the current Asian imports and meet some of the tire growth over the next four years,” according to the roadshow. The document says the tires won’t be subject of tariffs.
The facilities will be built on land owned by the City of Tulsa and located at the Tulsa International Airport.
The Wisconsin Public Finance Authority is a conduit agency that provides financing support for local governments across the country. Oklahoma’s Salina Economic Development Authority will borrow the proceeds to build the factory.
The project will be managed by a Delaware corporation formed for this purpose and wholly owned by Finland’s American Tire Works. Another Finish company, Black Donuts, will provide the product and process technology.
The bond issue is called the Revenue Bonds (Salina Economic Development Authority – American Tire Words Project) Series 2025 A (Current Interest Bonds.)
The bonds are a mix of current interest and capital appreciation bonds. The Series 2025 A tranche, current interest bonds will mature between 2025 and 2053. The capital appreciation bonds consist of a tax-exempt tranche Series 2025 B-1 and a taxable tranche Series 2025 B-2.
Interest rates and coupon information weren’t available. The bonds are payable from the facilities revenues.
The bonds won’t be rated.
Hilltop Securities is the underwriter.
Provided by Dow Jones Mar 18, 2025 10:38am
By Paulo Trevisani
Write to Paulo Trevisani at [email protected]
(END) Dow Jones Newswires
March 18, 2025 13:38 ET (17:38 GMT)
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