$400 million Louisiana GOs approved

Bloomberg News

The Louisiana State Bond Commission approved a $400 million general obligation bond sale for the state.

The bonds are scheduled to be sold competitively on April 9.

Bond proceeds will be used to fund $236.9 million in lines of credit taken by the state, $121.9 million taken by local governments and school boards and $19.1 million drawn by non-governmental organizations.

The bonds are to mature no later than 2045 and will be callable at par in 10 years.

PRAG will serve as municipal advisor, Butler Snow as bond counsel, and Auzenne & Associates as co-bond counsel.

The commission, led by Louisiana State Treasurer John Fleming, approved the GO bond unanimously Thursday.

Moody's Ratings rates the state Aa2 and S&P Global Ratings and Kroll Bond Ratings Agency rate it AA. Fitch Ratings rates it AA-minus.

The state has been hoping that Fitch will upgrade its bonds.

Fitch, Moody's and S&P said last month the state's recently adopted tax changes should address what a roughly $600 million projected deficit in the coming fiscal year, but the tax changes' revenue effects should be watched.