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.

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