Georgia-Pacific expects to cut borrowing costs for an upgrade to a toilet-paper mill in East Baton Rouge Parish by $15 million by financing it with $300 million of Gulf Opportunity Zone bonds.
The paper company said it expects to issue the tax-exempt debt with an interest rate 0.5% to 1% lower than taxables.
Louisiana Gov. Bobby Jindal said the bond-financed project will help the mill maintain its 1,000 jobs. Another 400 construction-related jobs will be created through 2012.
The incentive package assembled by the Department of Economic Development includes the tax-exempt private-activity bonds and $3 million under a program that provides refundable tax credits of up to 5% of capital investments over five years.
Additional savings will be realized because the company will not have to pay property taxes on the new facilities for up to 10 years.