Louisiana saved more than $100 million in debt service costs with last week’s $803 million refunding of gasoline and fuels tax revenue bonds, said state Treasurer John Kennedy.
The May 1 sale will be ratified next week by the Louisiana State Bond Commission.
Kennedy said the state obtained historically low interest rates with the refunding.
“This bond sale takes full advantage of the fleeting window of opportunity in the market right now by refinancing outstanding state debt at a significantly lower interest rate,” he said. “It will save the state approximately $4.4 million per year over the next 23 years.”
Lamont Financial Services is the state’s financial advisor.
Citi was the senior managing underwriter for the sale. Co-managers were Jefferies & Co., Raymond James | Morgan Keegan, Loop Capital Markets LLC, Stephens Inc. and Dorsey and Co. Bond counsel was Foley & Juddell LLP.
The bonds are rated AA-minus by Fitch Ratings and Aa1 by Moody’s Investors Service.
Louisiana has $1.86 billion of outstanding gasoline and fuels tax revenue bonds.