The Louisiana State Bond Commission approved a $1.03 billion health care bond, a $400 million state general obligation bond and two charter school bonds totaling $259 million.
The $1.03 billion bond will come from the Louisiana Public Facilities Authority on behalf of the Ochsner Clinic Foundation Project. Of this, $684 million will be new money and $351 million will be refunding.
The new money bonds will not exceed a 40-year maturity and will be used for acquiring, constructing, equipping improvements to the Ochsner Medical Center, Ochsner Elmwood Hospital, Ochsner Medical Center Baton Rouge, Ochsner Medical Center Kenner, Lafayette General Medical Center and other health care facilities spread throughout the state.
The refunding bonds will refund Series 2020B, Series 2016, Series 2015 bonds from the public facilities authority and will create or maintain a debt service reserve fund. The refunding will combine a mandatory tender, current refunding and potential tender offer, according to Conner Berthelot, assistant director with the Louisiana State Bond Commission.
The bonds will be sold on a negotiated basis with Jefferies, LLC and Ramirez & Co serving as underwriters.
The bond commission had approved the state's GO bond for sale in February on a competitive basis. The state postponed the
"It's no secret that the markets have been in somewhat of an uproar recently," said State Treasurer John Fleming.
The state's municipal advisor recommended the state switch to a negotiated sale because of the greater flexibility about the sale date, said Lela Folse, commission director. The staff needed a two-thirds vote from the commission and the state's Joint Legislative Committee of the Budget.
Both the commission and the committee approved the changes unanimously, with the commission acting Tuesday and the committee acting Wednesday.
Finally, the commission approved two related charter school bonds, one for $100 million and another for $159 million. The Louisiana Public Facilities Authority will issue both.
Folse said there were
Lafayette Renaissance Charter Academy Project will be the obligor on the $100 million bond and Acadiana Renaissance Charter Academy Project will be the obligor on the $159 million bond. The commission set a maximum maturity of 34 years and a maximum interest rate of 7.13%.
