The Louisiana State Bond Commission recently approved three significant bond issues totaling over $3 billion. Among these approvals was a bond ranging from $1.33 billion to $2 billion, which will be supported by tolls on the I-10 Calcasieu River Bridge. This bond aims to finance the replacement of the I-10 Calcasieu River bridge located in Lake Charles. The Department of Transportation and Development, in conjunction with Calcasieu Bridge Partners LLC, will oversee this project.
The approved bond, initially set at $1.33 billion, can be increased to $2 billion if necessary. JPMorgan and Wells Fargo Bank have been selected as underwriters for the bonds, which will be issued by the Louisiana Public Facilities Authority. Repayment of the bridge bond will be funded through bridge toll revenue, with private partners assuming the risk of insufficient toll collections to cover debt service payments. These private partners will operate the bridge for a period of 50 years. Additionally, state, federal, and private funds will contribute to the total project cost of $3.1 billion.
State General Obligation Bond
The State Bond Commission also approved a state general obligation bond not exceeding $1 billion. This bond will be utilized to refund previous bonds, including Series 2014D1 and 2014D2 bonds, as well as for possible forward delivery of Series 2015A and 2015B bonds. The refunding amount will depend on investor participation. The commission anticipates issuing an invitation to tender bonds on Aug. 2, with pricing scheduled for Aug. 20. It is expected that the bond deal will fall below $1 billion.
Finally, the commission granted preliminary approval for a gasoline and fuel tax revenue refunding bond of up to $1 billion. Final approval for this bond is projected to be sought at the Aug. 15 commission meeting. The unanimous approval of these bonds underscores the importance of infrastructure funding and development in Louisiana.
The decisions made by the Louisiana State Bond Commission play a crucial role in securing funding for essential infrastructure projects within the state. These approved bonds will not only address pressing transportation needs but also stimulate economic growth and development in the region. It is vital that the allocation of these funds is managed efficiently to maximize their impact on the state’s infrastructure.