BATON ROUGE, LA Refinancing bond issues for the Crescent City Connection and the Medical Center of Louisiana at New Orleans could save the state more than $5 million, according to State Treasurer John Kennedy.

The Bond Commission authorized going forward with these refundings, and wed like to be able to do this as soon as possible so that the state and Louisiana taxpayers can start benefiting immediately, said Treasurer Kennedy.

The Mississippi River Bridge Authority will refinance approximately $22 million in 1992 bridge revenue bonds for the Crescent City Connection. The refunding could result in a savings of up to $2 million. These bonds are payable from tolls on the bridge with a secondary pledge of Highway Fund No. 2.

The Louisiana Public Facilities Authority will refinance approximately $40 million in 1992 revenue bonds for the state Department of Health and Hospitals Medical Center of Louisiana at New Orleans (Hotel Dieu project). This could result in a savings of up to $2.5 million. These bonds are payable from annual appropriation by the Legislature, and while not providing direct savings to the state’s general fund, would provide annual savings to DHH to be used on other program services.

In the simplest terms, when the state refinances a bond issue, it benefits the same way an individual does when he or she refinances a home mortgage, said Treasurer Kennedy. When interest rates are as low as they’ve been lately, its a good time for us to refinance bonds in order to reduce the payments on state debt.

Contact:
Sarah Mulhearn
(225) 342-0012