New Orleans will seek approval of plan to refund up to $170 million of general obligation bonds at Thursday’s meeting of the Louisiana State Bond Commission.
The city wants to refund bonds issued from 1998 through 2004 to finance street repair projects and other public improvements.
The GO refunding is expected to provide $20 million of net present value and cash-flow savings of $26 million. If the commission approves the refunding, the bonds would be issued in a negotiated sale in July.
The New Orleans City Council approved the GO refunding June 8.
Citi is the lead underwriter on the refunding, with co-managers Raymond James | Morgan Keegan, Bank of America Merrill Lynch, Loop Capital Markets LLC and Stephens Inc.
Cantrell Wright and Foley & Judell LLP are co-bond counsel.
New Orleans’ GO debt is rated A3 by Moody’s Investors Service and A-minus by Fitch Ratings.
New Orleans also expects to bring to the commission in July a proposal for a $200 million taxable refunding. Proceeds will be allow the city to lower the interest rate on taxable pension bond debt issued in 2000, and avoid a $116 million balloon payment in March 2013.
The Port of New Orleans is seeking Bond Commission approval on Thursday for a $65 million refunding of port revenue bonds issued in 2002 and 2003.
