Louisiana commission approves $215M student housing bonds

The Louisiana Bond Commission approved $215 million Louisiana State University student housing bonds Thursday.

The Louisiana Public Facilities Authority will offer the bonds on behalf of South Quad L3C, a low-profit limited liability company, which has LSU Real Estate and Facilities Foundation, a Louisiana nonprofit, as its sole member.

South Quad L3C will use the Louisiana State University proceeds to build two freshmen residences ? with 1,266 bedrooms and associated parking ? and plan future phases of student housing and student support facilities.

The tax-exempt bonds are to not exceed 40 years in duration.

Commission Assistant Director Conner Berthelot told the commission there would likely be a 1.35 coverage ratio of auxiliary revenues to the maximum combined new debt service.

The bonds will sell on a negotiated basis with RBC Capital Markets serving as the underwriter.

The commission gave preliminary approval to the bonds in June and gave final approval Thursday.

LSU has used P3 entities in the past for building residential and parking facilities.