The prevailing view of the RNA polymerase II (RNAP II) transcription cycle is 
that RNAP II is recruited to the promoter, transcribes a linear DNA template, 
then terminates transcription and dissociates from the template. Subsequent 
rounds of transcription are thought to require de novo recruitment of RNAP II to 
the promoter. Several recent findings, including physical interaction of 3'-end 
processing factors with both promoter and terminator regions, challenge this 
concept. Here we report a physical association of promoter and terminator 
regions of the yeast BUD3 and SEN1 genes. These interactions are 
transcription-dependent, require the Ssu72 and Pta1 components of the CPF 3'-end 
processing complex, and require the phosphatase activity of Ssu72. We propose a 
model for RNAP II transcription in which promoter and terminator regions are 
juxtaposed, and that the resulting gene loops facilitate transcription 
reinitiation by the same molecule of RNAP II in a manner dependent upon 
Ssu72-mediated CTD dephosphorylation.