Louisiana commission approves more than $3 billion in bonds

The Louisiana State Bond Commission approved three bond issues totaling more than $3 billion on Wednesday.

The commission approved a $1.33 billion to $2 billion bond to be backed by tolls on the I-10 Calcasieu River Bridge, a state general obligation bond of up to $1 billion, and gave preliminary approval to a state gas and fuels tax bond of up to $1 billion.

The bridge bond would be for replacing the I-10 Calcasieu River bridge located in Lake Charles, headed by the Department of Transportation and Development and Calcasieu Bridge Partners LLC. While the bond is currently slated to provide $1.33 billion, the principal could be raised to $2 billion, if needed, according to Cassie Berthelot, assistant director with the commission.

JPMorgan (JPM) and Wells Fargo Bank were chosen as underwriters for the bonds, which will be issued by the Louisiana Public Facilities Authority

Bridge toll revenue will provide repayment funds. "The private partners will bear the risk of toll collections being insufficient to cover required debt service payments," Berthelot told the commission. The private partners will operate the DOT-owned bridge for 50 years.

In addition to the bond money, state, federal, and private funds will be used to complete the project, whose cost is estimated at $3.1 billion.

The board also approved a state GO bond to not exceed $1 billion to refund $124 million in Series 2014D1 and 2014D2 bonds, refund tendered bonds, and possible forward delivery of all or part of $221 million in Series 2015A and 2015B bonds. The amount of investor participation in the tender will determine the size of the refunding, Berthelot said.

Connected with this sale, she said, the commission expects to post an invitation to tender bonds on Aug. 2 and price them on Aug. 20. She said the bond deal will probably be under $1 billion.

Finally, the commission gave preliminary approval to up to a $1 billion gasoline and fuel tax revenue refunding bond. Berthelot said final approval for the bond would probably be sought at Aug. 15 commission meeting.

The bonds received unanimous approval.