GEISMAR, La. – Tyson Foods Inc. on Tuesday announced the issue and sale of special tax exempt bonds to help fund a renewable fuels plant in Geismar, La.

The plant is being built by Tyson and Snytroleum Corp. The plant is designed to produce diesel and jet fuels from animal fats and greases.

The bond sale consisted of $100 million in Gulf Opportunity Zone (GO Zone) Bonds, which were previously approved by the Louisiana State Bond Commission. The floating rate bonds have an initial interest rate of 1.3 percent.

Reports said the bonds were underwritten by SunTrust Robinson Humphrey Inc. and issued by the Louisiana Public Facilities Authority.

The plant reportedly has a projected cost of $138 million, with $100 million from the bonds, plus $26 million already funded by Tyson and Syntroleum. The balance of $12 million will be funded by the two companies by the end of the year.

“We’re very pleased with the outcome of the bond sale, particularly given the current economic challenges facing U.S. financial markets,” said Jeff Bigger, director of the Dynamic Fuels LLC Management Committee. “The funding will enable us to keep this important alternative energy project on track.”

Source: Tyson Foods Inc.