Treasurer Kennedy Says State's Stable Financial Outlook Was Key to Successful Sale

BATON ROUGE, LA – An online auction was held today at a special meeting of the State Bond Commission to sell $496.4 million in general obligation bonds to finance public projects statewide, according to State Treasurer John Kennedy.

“Unlike the federal government, Louisiana state government’s debt picture continues to improve, which was key to today’s successful bond sale,” said Treasurer Kennedy.

The State Bond Commission’s online auction pitted investors from across the globe against each other, and the winning bids were as follows:

  • $347.1 million in State of Louisiana General Obligation Bonds, Series 2014-A were awarded to J.P. Morgan Securities LLC with a true interest cost of 3.58.
  • $149.3 million in State of Louisiana Taxable General Obligation Bonds, Series 2014-B were awarded to Wells Fargo Bank, National Association with a true interest cost of 1.49.

An online bidding system maximizes the number of investors who can participate in the bond sale, enables investors to revise bids until seconds before the bid deadline, and leads to the most cost-effective interest rate possible for the state.

“The lower the interest rate, the cheaper it is to borrow money and the less money taxpayers have to pay to fund public projects,” said Treasurer Kennedy. “The interest cost is a good indicator of the market’s reception of these bonds, and we were very pleased with the results.”

All three rating agencies affirmed the state’s bond ratings with a stable outlook. Fitch and S&P rated the bonds AA, and Moody’s rated them Aa2.

The $496.4 million in General Obligation Bonds will fund 605 projects. View the GO Bond Project List here, which is broken down by parish so you can view all projects in your parish.

Contact:
Sarah Mulhearn
(225) 342-0012
smulhearn@treasury.state.la.us