The Louisiana Bond Commission approved the sale of $620 million in aviation revenue bonds and $220 million in sales tax bonds and modified conditions for up to $1 billion in gas and fuels tax bonds it previously authorized.
The commission consented to the sale of up to $575 million in
The refunding bonds will be issued as series 2015A (non-alternate minimum tax eligible) and series 2015B (AMT-eligible) bonds. They will refund 2015A and 2015B bonds sold to fund a portion of a passenger terminal and other projects at the Louis Armstrong New Orleans International Airport. The bonds will still have a final maturity of 2045.
The new money bonds, which also have a final maturity in 2045, will finance a sewer main, a boiler, parking lot improvements and a runway overlay at the airport.
The bonds will be sold on a negotiated basis, with the underwriter not yet selected, according to commission staff.
The bonds are secured by income, revenues, and receipts from the airport facilities the board oversees.
The board's revenue bonds are rated A2 by Moody's Ratings, A by S&P Global Ratings and A by Fitch Ratings.
Frasca & Associates is the board's municipal advisor.
Also approved at the meeting was a $220 million MovEBR sales tax revenue bond for East Baton Rouge Parish, the Metropolitan Council of the Parish of East Baton Rouge and the city of Baton Rouge. The bonds' maturity will not exceed 24 years and interest rate will not exceed 6%.
The proceeds of the negotiated sale will be used to construct or improve roads, signals and sidewalks, add drainage and lights, and improve the Advanced Traffic Management Center.
Stifel, Nicolaus and Loop Capital will serve as underwriters.
The commission made changes to the up to $1 billion
The commission also increased the maximum size of the anticipated second lien bonds to $1 billion from $250 million, although the total issuance can't exceed $1 billion. The anticipated first lien bonds can be for up to $750 million. The total issuance will depend on bondholder participation in the tender, said Lela Folse, the commission director.
The commission plans to post
A bond sale and an additional tender for series 2022A is planned for January.
