The Louisiana Public Facilities Authority has disclosed that the Internal Revenue Service began auditing $240.43 million of its bonds in March 2012, but closed the audit with no change to the tax-exempt status of the bonds in February of this year.
The LPFA made the disclosure in an event notice filed with EMMA Thursday. The bonds were part of $283.475 million of revenue bonds issued for its Hurricane Recovery Program.
The bonds were to be used to provide a cash capital investment to the city and sewage and water board to finance improvements, according to the official statement. LIPA officials could not immediately be reached for comment.
The bonds were unwritten by a syndicate led by Morgan Keegan & Co., now Raymond James, and Merrill Lynch & Co., now Bank of America Merrill Lynch.
Bond counsel was Foley & Judell LLP and underwriter’s counsel was Adams & Reese LLP.