BATON ROUGE, La. – The state went to market this week to sell $74 million in Unclaimed Property bonds that will finance work on Interstate 49 South, according to State Treasurer John Kennedy. The sale generated more than $82 million in proceeds.

“This bond sale will help us move forward in completing more of I-49 South between New Orleans and Lafayette,” said Treasurer Kennedy. “We’ve made tremendous progress on this important project by coming up with a plan that finally got us moving on the construction work. Anyone who lives in south Louisiana knows how important it is to get I-49 South finished. We need this hurricane evacuation route.”

The state was able to sell the Unclaimed Property bonds at an interest rate of 3.79%. The state had to turn away some investors because of the overwhelming interest in the bonds. From the bond sale, $76 million will be deposited into a project fund for I-49 South, $5.79 million will be placed in a reserve fund and $283,000 will be used for cost of issuance.

Treasurer Kennedy developed the funding mechanism that uses excess annual collections from the Unclaimed Property program to pay the debt service on the bonds. Proceeds from the bond sale, along with federal funding, will finance U.S. 90 from Albertson Parkway to just north of Ambassador Caffery and the U.S. 90/LA 318 interchange project. The projects are part of a multi-year effort to convert 160 miles of the current U.S. 90 corridor from Lafayette to New Orleans into Interstate 49.

“We’re not taking anyone’s Unclaimed Property money. We’re simply utilizing excess annual collections,” said Treasurer Kennedy. “If you have money in the Louisiana Treasury, we’ll hold onto it until you claim it.”

The underwriting team handling the Unclaimed Property bond sale included J.P. Morgan, Senior Underwriter; Morgan Stanley, Stephens Inc. and Drexel Hamilton, LLC, Co-Managers; Breazeale, Sachse & Wilson, L.L.P., Underwriters Counsel; Foley & Judell, L.L.P., Bond Counsel; and Lamont Financial Services Corporation, Financial Adviser.

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