Louisiana borrows $187M for state-financed construction work
Louisiana borrowed $187 million Tuesday to keep money flowing to state-financed construction work, with continued budget uncertainties and the recent flooding damage raising questions about which projects will proceed.
The Bond Commission, which oversees construction spending, approved the general obligation bond sale, which involves borrowing money by selling bonds to investors for upfront cash. Bank Of America Merrill Lynch was the winning bidder. The debt will be paid over 20 years with a 2.7 percent interest rate.
Without an influx of new cash, Louisiana was expected to soon start running out of money for items in the state construction budget such as building repairs, economic development projects, roadwork, park improvements and lawmakers' local projects.
The state's financial adviser, Renee Boicourt with Lamont Financial Services Corp., and Treasurer John Kennedy, chairman of the Bond Commission, were pleased with the terms of Tuesday's sale, which were better than they expected.
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