IPC bought the site and will build and equip the plant with the help of $5 million in tax-exempt financing arranged by the New Jersey EDA. Banc of America Securities LLC underwrote the 20-year bond issue, which carries an initial variable interest rate of 1.15%.
"In addition to offering a tax-exempt investment for the bondholder, EDA bonds also provide us with a much lower interest rate, which is a factor that makes it much more practical to build a facility," according to Eric Iwafuchi, vice president and CFO for IPC. His 10-year-old company, which has operations in a dozen other states, had been considering closing the local operation and combining it with one of those locations.
"The tax-exempt bond financing that EDA can make available to manufacturers like IPC will allow the company to move from an undersized leased facility to a nearby site without any dislocation of the workforce," points out Al Koeppe, EDA chairman.
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