Louisiana commission approves $400M GOs

Louisiana received approval to sell up to $400 million of general obligation bonds from the State Bond Commission on Thursday.

The commission also authorized the government to develop a plan to refund $285.9 million of Series 2016A, B and D bonds.

The $400 million GOs will be sold by competitive bid on April 16, according to documents from the Louisiana Office of Facility Planning and Control. PRAG will serve as municipal advisor, Boles Shafto will be bond counsel and Dunlap Fiore will be co-bond counsel.

Proceeds from the sale will fund various capital projects, with 66.9% of $383.7 million raised for state government projects, 25.7% for local governments and 7.4% for non-government organizations.

The GOs will mature no later than 2046.

An official with the Louisiana Office of Facility Planning and Control said the office had accelerated its spending on capital needs in the last few years to address needs more quickly. In the two-year period ending June 30, 2025, the state spent $800 million in the second fiscal year compared to spending $328 million in the first.

The refunding bonds are to be priced after April 16 but before June 3.

The commission, chaired by Louisiana Treasurer John Fleming, approved both measures unanimously.

Louisiana's GO bonds are rated Aa2 by Moody's Ratings, AA by S&P Global Ratings, and AA-minus by Fitch Ratings. Fitch Ratings improved its outlook to positive from stable in November.