Treasurer Kennedy: Savings Free Up Money for Roads and Bridges

BATON ROUGE, LA – The State of Louisiana refinanced more than $649 million in Gasoline and Fuels Tax Bonds yesterday, generating over $109 million in debt service savings (net present value of $70 million) for taxpayers, according to State Treasurer John Kennedy.
“Just like homeowners refinance their mortgages to achieve savings, we refinanced these bonds to capture lower interest rates,” said Treasurer Kennedy. “The state will pay less in debt service, resulting in significant savings.”
The interest savings can only be used for highway projects in the TIMED program. State law prohibits using the money for other state needs.
“We cannot use this money to solve the state’s budget problems. We still need to sit down and determine why the state isn’t living within its means,” said Treasurer Kennedy. “These savings will help us tackle important transportation projects.”
The new interest rate is 3.669 percent, down from 4.720 percent.
Citigroup served as Senior Underwriter for the bond deal. Bank of America Merrill Lynch, Loop Capital Markets and Raymond James & Associates, Inc. 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.

Contact:
Michelle Millhollon
(225) 342-0012
mmillhollon@treasury.state.la.us