The Louisiana State Bond Commission recently approved a significant bond issue totaling more than $3 billion. This massive issuance includes three separate bond issues aimed at funding various infrastructure projects across the state. The approval of these bonds signifies a major commitment to improving Louisiana’s transportation and infrastructure network.
The Details of the Bond Issues
One of the bond issues approved by the commission is a $1.33 billion to $2 billion bond that will be backed by tolls on the I-10 Calcasieu River Bridge. This bond is specifically allocated for the replacement of the existing bridge located in Lake Charles. Under the oversight of the Department of Transportation and Development and Calcasieu Bridge Partners LLC, this project aims to enhance transportation efficiency in the region. The commission also greenlit a state general obligation bond of up to $1 billion, as well as a state gas and fuels tax bond of up to $1 billion.
Working with Underwriters
The commission has selected JPMorgan and Wells Fargo Bank as the underwriters for the approved bonds. These financial institutions will assist in issuing the bonds through the Louisiana Public Facilities Authority. The bridge toll revenue will serve as the primary source of repayment for the I-10 Calcasieu River Bridge bond. Importantly, the private partners involved in the project will carry the risk of toll collections potentially falling short of required debt service payments. Furthermore, these private partners will be responsible for operating the bridge for a 50-year period.
Completing the Project
It is estimated that the total cost of the I-10 Calcasieu River Bridge replacement project will amount to $3.1 billion. In addition to the bond funding, a combination of state, federal, and private funds will be utilized to complete the undertaking. This multi-faceted approach highlights the collaborative effort involved in tackling such large-scale infrastructure projects.
The bond commission also approved a state general obligation bond not to exceed $1 billion. This bond issuance will facilitate the refunding of $124 million in Series 2014D1 and 2014D2 bonds, as well as the refunding of tendered bonds. The commission anticipates engaging investors to participate in the refunding process, which will ultimately determine the size of the refunding operation. Additionally, the commission expects to post an invitation to tender bonds on August 2nd and price them on August 20th. This upcoming bond deal is likely to be below $1 billion in value.
Finally, the commission granted preliminary approval for a gasoline and fuel tax revenue refunding bond of up to $1 billion. The commission aims to seek final approval for this bond issuance at its meeting on August 15th. The unanimous approval received by all three bond issues underscores the support for vital infrastructure improvements in the state.
The Louisiana State Bond Commission’s decision to approve these substantial bond issues demonstrates a proactive approach to addressing critical infrastructure needs. The collaborative effort between public and private entities, along with the use of various funding sources, highlights the comprehensive strategy employed to execute these infrastructure projects. This bold initiative signifies a significant investment in Louisiana’s future economic growth and development.