Increasing Access to Rural Community Investment Opportunities for Investors, 80868-80869 [2011-33111]
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80868
Notices
Federal Register
Vol. 76, No. 248
Tuesday, December 27, 2011
This section of the FEDERAL REGISTER
contains documents other than rules or
proposed rules that are applicable to the
public. Notices of hearings and investigations,
committee meetings, agency decisions and
rulings, delegations of authority, filing of
petitions and applications and agency
statements of organization and functions are
examples of documents appearing in this
section.
DEPARTMENT OF AGRICULTURE
Office of the Secretary
Increasing Access to Rural Community
Investment Opportunities for Investors
Office of the Secretary, USDA.
Notice.
AGENCY:
ACTION:
This Notice applies to
investors interested in investment
opportunities in rural infrastructure;
these potential investors are encouraged
to contact the Department of Agriculture
(USDA). The Rural Development Act of
1972 established USDA’s authority to
make loans and grants to rural
communities. Currently, USDA manages
a loan portfolio of approximately $150
billion, of which $5.3 billion is for
community facilities. USDA seeks to
partner with investors willing to create
and implement investment structures
that would improve rural communities’
access to capital by expanding the
leveraging of USDA’s community
facilities loan funds. Given current
turbulent market conditions, these
investments may be particularly
attractive to the private sector as they
have historically provided low-risk,
steady cash flows. USDA is open to
considering a variety of different
investment structures.
DATES: Please provide your contact
information on or before January 26,
2012.
SUMMARY:
Please submit your contact
information to: Doug O’Brien, Room
205W, U.S. Department of Agriculture,
1400 Independence Ave., SW.,
Washington, DC 20250; infrastructure.
investments@osec.usda.gov.
FOR FURTHER INFORMATION CONTACT: For
further information on this notice,
please contact: Daniel Burrows, Room
205W, U.S. Department of Agriculture,
1400 Independence Ave., SW.,
Washington, DC 20250; infrastructure.
investments@osec.usda.gov.
sroberts on DSK5SPTVN1PROD with NOTICES
ADDRESSES:
VerDate Mar<15>2010
22:00 Dec 23, 2011
Jkt 226001
SUPPLEMENTARY INFORMATION:
Purpose
This notice offers the opportunity for
interested investors to partner with
USDA in considering and implementing
different investment structures that
provide increased access to capital for
rural communities. These structures
could provide investors with greater
access to a large and stable pool of
investments in rural America.
USDA understands that investors
have a responsibility to provide market
rate returns for their investments, and
these investment structures should be
designed to be competitive as part of a
larger ‘‘positive value driven’’ portfolio.
USDA is open to considering a variety
of different investment structures. For
example, investors could provide
financing in projects with USDA at a
project level or instead pool capital from
different investors to create a dedicated
infrastructure investment fund to invest
directly in more projects. By law, USDA
must continue to invest directly at a
project level, but the private investor
structure can be more flexible with debt
and equity options, and driven by
market interests. Investors would be at
complete risk for any loss that results
from their investment.
Background
USDA has a long and successful
history of making loans to rural
communities. USDA’s Rural
Development Community Facility
Program manages a loan portfolio of
approximately $150 billion, of which
$5.3 billion is for community facilities.
This program provides direct loans,
guaranteed loans, and grants to rural
communities to construct essential
infrastructure such as schools, hospitals,
and fire stations. This program creates
jobs, increases the vibrancy of the rural
economy, and enhances the quality of
life in rural areas. Even in turbulent
market conditions, these loans have
generated steady returns, with very low
default rates.
USDA’s Community Facilities
program has been oversubscribed for the
last three Federal fiscal years. During
fiscal year 2012, USDA will make $1.3
billion of direct loans available to rural
communities, an amount not likely to
meet the demand from worthy projects.
Currently, USDA has applications for
over one billion dollars in rural
communities, and it expects this
PO 00000
Frm 00001
Fmt 4703
Sfmt 4703
backlog to increase during this fiscal
year.
USDA direct loans for community
facilities are currently at a 3.75 percent
interest rate. A potential borrower could
leverage this with another loan at a
slightly higher market rate, and the
blended rate could still be attractive to
them.
Thus, with the confluence of the
backlog in projects and low lending
rates, this is an opportune time to make
funds available to these projects.
The Agency employs a welldeveloped methodology of due
diligence in awarding loans for
Community Facility projects. This
methodology includes a comprehensive
look at past performance and future
projections, including management,
revenue security, future demand
forecasts, retirement profiles, and
historical financials. The Agency also
makes an assessment of the broad-based
community support for the facility as
demonstrated by a variety of factors,
including previous fundraising efforts.
As a result, the Community Facility loan
portfolio has historically performed
extraordinarily well. However, investors
would be at complete risk for any loss
that results from their investment. Also,
the Agency would need to have at least
a parity position with respect to the
security, such that in the event of a
default, each lender would be affected
on a proportionate basis.
Thus, if the deal flow is there, our
question to the private sector is whether
there is also a demand for low-risk,
long-term investments in rural America
with stable cash flows.
With this Notice, USDA seeks to
obtain a list of investors, as described
below, who are interested in pursuing
the creation and implementation of
investment structures designed to
facilitate and increase rural America’s
access to capital. USDA will contact
each respondent to discuss specific
items associated with the creation and
implementation of such investment
structures. Items that will be discussed
will include, but are not necessarily
limited to investor desires for:
• Debt or equity,
• Loan term,
• Interest rates,
• Lien positions,
• Collateral,
• Delinquency actions,
• Diversification, and
E:\FR\FM\27DEN1.SGM
27DEN1
Federal Register / Vol. 76, No. 248 / Tuesday, December 27, 2011 / Notices
• Due diligence procedures.
Once we have made these contacts
with each interested investor, USDA
will hold one or more meetings, as
necessary. It is expected that these
meetings will occur over a one- to-two
month period.
USDA believes that, in order for this
effort to be successful, each
participating investor:
• Should be a well-established
investor, including, but not limited to,
entities such as pension funds,
commercial banking institutions,
insurance investment funds,
foundational endowments, or family
offices;
• Interested in investing in low risk,
rural infrastructure as part of a larger
portfolio;
• Willing to commit funds for the
long term (e.g., 20+ years); and
• Interested in participating in a
limited number of interviews and
panels as we shape this initiative with
USDA.
Interested Entities
If you are interested in the formation
of, and participation in, this effort for
increasing access to capital for
community facility projects in rural
America, please provide the following
information to Doug O’Brien, as
specified in the ADDRESSES section of
this Notice, on or before January 26,
2012:
• Name of Institution,
• Headquarters Mailing Address,
• Contact Name and Title,
• Contact Mailing Address,
• Contact Telephone Number(s), and
• Contact Email Address.
Thomas J. Vilsack,
Secretary.
[FR Doc. 2011–33111 Filed 12–23–11; 8:45 am]
BILLING CODE 3410–01–P
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection
Service
[Docket No. APHIS–2011–0023]
sroberts on DSK5SPTVN1PROD with NOTICES
Monsanto Co.; Determination of
Nonregulated Status of Corn
Genetically Engineered for Drought
Tolerance
Animal and Plant Health
Inspection Service, USDA.
ACTION: Notice.
AGENCY:
We are advising the public of
our determination that a corn line
developed by the Monsanto Co.,
designated as event MON 87460, which
SUMMARY:
VerDate Mar<15>2010
22:00 Dec 23, 2011
Jkt 226001
has been genetically engineered for
drought tolerance, is no longer
considered a regulated article under our
regulations governing the introduction
of certain genetically engineered
organisms. Our determination is based
on our evaluation of data submitted by
the Monsanto Company in its petition
for a determination of nonregulated
status, our analysis of available
scientific data, and comments received
from the public in response to our
previous notice announcing the
availability of the petition for
nonregulated status and its associated
environmental assessment and plant
pest risk assessment. This notice also
announces the availability of our
written determination and finding of no
significant impact.
DATES: Effective Date: December 27,
2011.
ADDRESSES: You may read the
documents referenced in this notice and
the comments we received in our
reading room. The reading room is
located in Room 1141 of the USDA
South Building, 14th Street and
Independence Avenue SW.,
Washington, DC. Normal reading room
hours are 8 a.m. to 4:30 p.m., Monday
through Friday, except holidays. To be
sure someone is there to help you,
please call (202) 690–2817 before
coming. Those documents are also
available on the Internet at https://
www.aphis.usda.gov/biotechnology/
not_reg.html and are posted with the
previous notice and the comments we
received on the Regulations.gov Web
site at https://www.regulations.gov/
#!docketDetail;D=APHIS-2011-0023.
FOR FURTHER INFORMATION CONTACT: Mr.
Evan Chestnut, Policy Analyst,
Biotechnology Regulatory Services,
APHIS, 4700 River Road Unit 147,
Riverdale, MD 20737–1236; (301) 734–
0942, email:
evan.a.chestnut@aphis.usda.gov. To
obtain copies of the documents
referenced in this notice, contact Ms.
Cindy Eck at (301) 734–0667, email:
cynthia.a.eck@aphis.usda.gov.
SUPPLEMENTARY INFORMATION:
Background
The regulations in 7 CFR part 340,
‘‘Introduction of Organisms and
Products Altered or Produced Through
Genetic Engineering Which Are Plant
Pests or Which There Is Reason to
Believe Are Plant Pests,’’ regulate,
among other things, the introduction
(importation, interstate movement, or
release into the environment) of
organisms and products altered or
produced through genetic engineering
that are plant pests or that there is
PO 00000
Frm 00002
Fmt 4703
Sfmt 4703
80869
reason to believe are plant pests. Such
genetically engineered organisms and
products are considered ‘‘regulated
articles.’’
The regulations in § 340.6(a) provide
that any person may submit a petition
to the Animal and Plant Health
Inspection Service (APHIS) seeking a
determination that an article should not
be regulated under 7 CFR part 340.
Paragraphs (b) and (c) of § 340.6
describe the form that a petition for a
determination of nonregulated status
must take and the information that must
be included in the petition.
APHIS received a petition (APHIS
Petition Number 09–055–01p) from the
Monsanto Company (Monsanto) of St.
Louis, MO, seeking a determination of
nonregulated status of corn (Zea mays
L.) designated as event MON 87460,
which has been genetically engineered
for drought tolerance, stating that this
corn is unlikely to pose a plant pest risk
and, therefore, should not be a regulated
article under APHIS’ regulations in 7
CFR part 340.
In a notice 1 published in the Federal
Register on May 11, 2011 (76 FR 27303–
27304, Docket No. APHIS–2011–0023),
APHIS announced the availability of the
Monsanto petition, a plant pest risk
assessment (PPRA), and a draft
environmental assessment (EA) for
public comment. APHIS solicited
comments on the petition, whether the
subject corn is likely to pose a plant pest
risk, the draft EA, and the PPRA for 60
days ending on July 11, 2011. On July
27, 2011, APHIS published in the
Federal Register (76 FR 44891–44892,
Docket No. APHIS–2011–0023) a notice
announcing the extension of the public
comment period for 30 days, ending on
August 12, 2011.
APHIS received 250 comments
through the Regulations.gov Web site
during the comment period, with 21
commenters expressing support of the
EA’s preferred alternative to make a
determination of nonregulated status
and the remaining 229 commenters
expressing opposition. Three of the
submitted comments opposing a
determination of nonregulated status
included electronic attachments that
consisted either of: (1) A single letter
signed by numerous people (6,335
signatures), (2) many letters containing
identical material (16,742 letters), or (3)
a consolidated document of comments
(22,500 comments). Many commenters
generally expressed opposition to
genetically engineered (GE) organisms
1 To view the notices mentioned in this
document, the petition, the draft EA, the PPRA, and
the comments we received, go to https://
www.regulations.gov/#!docketDetail;D=APHIS2011-0023.
E:\FR\FM\27DEN1.SGM
27DEN1
Agencies
[Federal Register Volume 76, Number 248 (Tuesday, December 27, 2011)]
[Notices]
[Pages 80868-80869]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-33111]
========================================================================
Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
========================================================================
Federal Register / Vol. 76, No. 248 / Tuesday, December 27, 2011 /
Notices
[[Page 80868]]
DEPARTMENT OF AGRICULTURE
Office of the Secretary
Increasing Access to Rural Community Investment Opportunities for
Investors
AGENCY: Office of the Secretary, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This Notice applies to investors interested in investment
opportunities in rural infrastructure; these potential investors are
encouraged to contact the Department of Agriculture (USDA). The Rural
Development Act of 1972 established USDA's authority to make loans and
grants to rural communities. Currently, USDA manages a loan portfolio
of approximately $150 billion, of which $5.3 billion is for community
facilities. USDA seeks to partner with investors willing to create and
implement investment structures that would improve rural communities'
access to capital by expanding the leveraging of USDA's community
facilities loan funds. Given current turbulent market conditions, these
investments may be particularly attractive to the private sector as
they have historically provided low-risk, steady cash flows. USDA is
open to considering a variety of different investment structures.
DATES: Please provide your contact information on or before January 26,
2012.
ADDRESSES: Please submit your contact information to: Doug O'Brien,
Room 205W, U.S. Department of Agriculture, 1400 Independence Ave., SW.,
Washington, DC 20250; infrastructure.investments@osec.usda.gov.
FOR FURTHER INFORMATION CONTACT: For further information on this
notice, please contact: Daniel Burrows, Room 205W, U.S. Department of
Agriculture, 1400 Independence Ave., SW., Washington, DC 20250;
infrastructure.investments@osec.usda.gov.
SUPPLEMENTARY INFORMATION:
Purpose
This notice offers the opportunity for interested investors to
partner with USDA in considering and implementing different investment
structures that provide increased access to capital for rural
communities. These structures could provide investors with greater
access to a large and stable pool of investments in rural America.
USDA understands that investors have a responsibility to provide
market rate returns for their investments, and these investment
structures should be designed to be competitive as part of a larger
``positive value driven'' portfolio.
USDA is open to considering a variety of different investment
structures. For example, investors could provide financing in projects
with USDA at a project level or instead pool capital from different
investors to create a dedicated infrastructure investment fund to
invest directly in more projects. By law, USDA must continue to invest
directly at a project level, but the private investor structure can be
more flexible with debt and equity options, and driven by market
interests. Investors would be at complete risk for any loss that
results from their investment.
Background
USDA has a long and successful history of making loans to rural
communities. USDA's Rural Development Community Facility Program
manages a loan portfolio of approximately $150 billion, of which $5.3
billion is for community facilities. This program provides direct
loans, guaranteed loans, and grants to rural communities to construct
essential infrastructure such as schools, hospitals, and fire stations.
This program creates jobs, increases the vibrancy of the rural economy,
and enhances the quality of life in rural areas. Even in turbulent
market conditions, these loans have generated steady returns, with very
low default rates.
USDA's Community Facilities program has been oversubscribed for the
last three Federal fiscal years. During fiscal year 2012, USDA will
make $1.3 billion of direct loans available to rural communities, an
amount not likely to meet the demand from worthy projects. Currently,
USDA has applications for over one billion dollars in rural
communities, and it expects this backlog to increase during this fiscal
year.
USDA direct loans for community facilities are currently at a 3.75
percent interest rate. A potential borrower could leverage this with
another loan at a slightly higher market rate, and the blended rate
could still be attractive to them.
Thus, with the confluence of the backlog in projects and low
lending rates, this is an opportune time to make funds available to
these projects.
The Agency employs a well-developed methodology of due diligence in
awarding loans for Community Facility projects. This methodology
includes a comprehensive look at past performance and future
projections, including management, revenue security, future demand
forecasts, retirement profiles, and historical financials. The Agency
also makes an assessment of the broad-based community support for the
facility as demonstrated by a variety of factors, including previous
fundraising efforts. As a result, the Community Facility loan portfolio
has historically performed extraordinarily well. However, investors
would be at complete risk for any loss that results from their
investment. Also, the Agency would need to have at least a parity
position with respect to the security, such that in the event of a
default, each lender would be affected on a proportionate basis.
Thus, if the deal flow is there, our question to the private sector
is whether there is also a demand for low-risk, long-term investments
in rural America with stable cash flows.
With this Notice, USDA seeks to obtain a list of investors, as
described below, who are interested in pursuing the creation and
implementation of investment structures designed to facilitate and
increase rural America's access to capital. USDA will contact each
respondent to discuss specific items associated with the creation and
implementation of such investment structures. Items that will be
discussed will include, but are not necessarily limited to investor
desires for:
Debt or equity,
Loan term,
Interest rates,
Lien positions,
Collateral,
Delinquency actions,
Diversification, and
[[Page 80869]]
Due diligence procedures.
Once we have made these contacts with each interested investor,
USDA will hold one or more meetings, as necessary. It is expected that
these meetings will occur over a one- to-two month period.
USDA believes that, in order for this effort to be successful, each
participating investor:
Should be a well-established investor, including, but not
limited to, entities such as pension funds, commercial banking
institutions, insurance investment funds, foundational endowments, or
family offices;
Interested in investing in low risk, rural infrastructure
as part of a larger portfolio;
Willing to commit funds for the long term (e.g., 20+
years); and
Interested in participating in a limited number of
interviews and panels as we shape this initiative with USDA.
Interested Entities
If you are interested in the formation of, and participation in,
this effort for increasing access to capital for community facility
projects in rural America, please provide the following information to
Doug O'Brien, as specified in the ADDRESSES section of this Notice, on
or before January 26, 2012:
Name of Institution,
Headquarters Mailing Address,
Contact Name and Title,
Contact Mailing Address,
Contact Telephone Number(s), and
Contact Email Address.
Thomas J. Vilsack,
Secretary.
[FR Doc. 2011-33111 Filed 12-23-11; 8:45 am]
BILLING CODE 3410-01-P