The Louisiana State Bond Commission on Thursday will consider several options by the Louisiana Stadium and Exposition District to refinance $294 million of variable-rate debt and other obligations. The debt was issued in 2006 to finance repairs and improvements at the Mercedes-Benz Superdome after Hurricane Katrina.
The district is asking for preliminary approval for up to $450 million of revenue refinancing bonds. The refinancing includes unspecified swap termination payments on fixed-to-fixed and fixed-to-floating-rate swaps, bond insurance and litigation costs.
The district, a state agency that oversees the domed stadium and related facilities in New Orleans, also must pay the Internal Revenue Service under its tax-exempt bonds Voluntary Closing Agreement Program.
Louisiana purchased $225.8 million of the 2006 bonds in April 2008 with an exemption from the IRS and has held them since. The state bought the bonds when the interest rate went to 12% from 4% due to unexpected failures in the auction-rate market.
A request from Louisiana Public Facilities Authority for $125 million of revenue bonds for projects at Tulane University is also on Thursday’s agenda.
