DALLAS – Louisiana State Bond Commission will consider a proposal for an $82 million taxable refunding of state gasoline tax bonds that will include a swap termination payment to Wells Fargo.
The $60.64 million of taxable Build America Bonds being refunded carry a mandatory tender date of Nov. 1.
The second-line gasoline and fuels tax bonds were issued in July 2009 as variable rate bonds in a weekly mode at three-month LIBOR plus 250 basis points.
Two months before a July 2012 hard put on 2009 bonds, the state moved to Wells Fargo the hedge agreements held by Citi on the debt.
Louisiana’s second-lien gas and fuels tax revenue bonds are rated Aa2 by Moody’s Investors Service, AA by Standard & Poor’s and AA-minus by Fitch.
The Commission will also consider a request by Livingston Parish for $65 million of sales tax and special assessment revenue bonds.
Proceeds from the bonds will fund roads, bridges, and drainage infrastructure for the $450 million Juban Crossing retail development project in Denham Springs..
Gov. Bobby Jindal has twice vetoed state funds for the development that supporters said would generate 2,500 jobs.
Last month he killed a measure establishing a tax increment financing district that could issue bonds supported by 1% of the state’s 4% sales tax generated in the 470-acre shopping district.
Jindal said it would divert too much money from the state’s general fund.
The parish council will vote later this month on a proposal to dedicate 75% of the parish’s 1% sales taxes to the bonds.
An earlier pledge of 40% of the parish’s on-site tax revenues was not sufficient without the state’s share, said Livingston Parish president Layton Ricks.
The Commission will meet at 10 a.m. Thursday in Baton Rouge.
