BATON ROUGE, LA - The State of Louisiana refinanced $377 million in Gasoline and Fuels Tax Revenue Bonds this week, freeing up more than $54 million for infrastructure projects.
“By refinancing these bonds we’re able to shave $19 million off of our principal and lower our annual payments for the life of these bonds,” said State Treasurer Ron Henson. “None of the savings goes into the General Fund for state government to spend. The money saved must be used for infrastructure improvements.”
The state paid for various highway and bridge projects in the TIMED Program by issuing Gasoline and Fuels Tax Revenue Bonds. The state can refinance these bonds, similar to a homeowner refinances a mortgage, for a lower interest rate.
Louisiana originally issued the bonds that were refinanced today in 2010 and 2012. Annual savings will range from $1.5 million to $2.7 million until 2045.
Citi served as Senior Underwriter for the refinancing. Jefferies, Raymond James and USBank served as Co-Managers; Lamont Financial Services Corporation as Financial Advisor; Foley & Judell, L.L.P., Bond Counsel; and Breazeale, Sachse & Wilson, L.L.P. as Underwriter's Counsel. The deal will close on August 30.