Lafayette will refund $29.3 million of public improvement sales tax bonds in an upcoming negotiated sale to obtain $1 million of savings, or 3.5% of refunded principal, with no extension of maturity.
The sale is tentatively scheduled for the week of April 11. The bonds are rated Aa3 by Moody’s Investors Service and AA by Standard & Poor’s.
Co-managers are Morgan Keegan & Co. and Stephens Inc. Foley & Juddell LLP is bond counsel.
The city will refund $17.2 million of bonds supported by a 1% sales tax adopted in 1961, and $12.1 million of bonds supported by a separate 1% sales tax adopted in 1985. The taxes generated $67.1 million in fiscal 2010. After the refunding, the city will have $156.9 million of outstanding debt supported by the 1961 tax and $134.9 million supported by the 1985 tax.