The Louisiana State Bond Commission will meet today to consider a resolution setting the parameters of a $435 million negotiated bond sale for the state’s transportation program. The bonds are expected to price by the end of August.
Proceeds from the fuel-tax revenue bonds will finance a phase of the $5.2 billion Transportation Infrastructure Model for Economic Development program. The state has issued $3.3 billion of fuel-tax revenue bonds for the TIMED program.
The program, which is almost completed, was authorized by a constitutional amendment approved by voters in 1989.
The TIMED second-lien bonds are supported by four cents of the state’s 20-cents-per-gallon tax on gasoline and diesel fuel.
If those revenues are not sufficient, additional support will be available from the non-dedicated 16 cents. The fuel-tax bonds are rated Aa3 by Moody’s Investors Service and AA by Standard & Poor’s.
Senior managers are Citi and Goldman, Sachs & Co., with Goldman as book-runner. Co-senior managers include Stephens Inc., Sterne, Agee & Leach Inc., Loop Capital Markets Inc., and Morgan Keegan & Co.
