NEW YORK, Aug. 28 /PRNewswire-FirstCall/ -- BNY Mellon Corporate Trust has been appointed paying agent and registrar for Caddo Parish School District's $17.3 million Qualified School Construction Bond issue, one of the first such issuances to take place under the American Recovery and Reinvestment Act (ARRA) of 2009 and the first one in the State of Louisiana.
A new category of tax-credit bonds created by ARRA, Qualified School Construction Bonds provide bondholders with federal tax credits in lieu of interest. Since issuers are generally responsible for just the principal, there is a significant reduction in an issuer's cost of borrowing. Bond proceeds can be used for the construction, rehabilitation, or repair of public school facilities or for the acquisition of land on which a public school facility will be constructed.
In its role, BNY Mellon Corporate Trust will provide a variety of services for the debt issue, including processing principal and interest payments and maintaining bondholder records.
"As the country's leading corporate trust provider, we are well positioned to provide administrative services to the growing number of issuers who want to take advantage of the new bond programs created by the American Recovery and Reinvestment Act," said Troy Kilpatrick, managing director and head of the Corporate and Municipal Finance Group within BNY Mellon Corporate Trust. "Our expertise in administering a wide range of bond issuances will enable us to support Caddo Parish School District in financing improvements that will increase the educational opportunities for their students."
BNY Mellon Corporate Trust services nearly $12 trillion in outstanding debt from 58 locations in 20 countries. Its clients include governments and their agencies, multinational corporations, financial institutions and other entities that access the global debt capital markets. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services and develop customized and market-driven solutions. Its range of core services includes debt trustee, paying agency, escrow and other fiduciary offerings.
Corporate trust providers are appointed by debt issuers as well as fund and collateral management institutions to perform a variety of services related to debt and collateral administration, safekeeping, direct cash and investment management, portfolio and transparency analytics, reporting, and final asset disposition and distribution activities.
BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $20.7 trillion in assets under custody and administration, $926 billion in assets under management, services $11.8 trillion in outstanding debt and processes global payments averaging $1.8 trillion per day. Additional information is available at www.bnymellon.com.
SOURCE The Bank of New York Mellon Corporation