Louisiana Unlocks Funding for Major Airport Upgrades and Infrastructure Projects

The Louisiana Bond Commission has approved the sale of over $800 million in bonds to fund critical infrastructure projects across the state, including a major renovation and expansion of the Louis Armstrong New Orleans International Airport. The commission also greenlit the issuance of $220 million in sales tax bonds for the city of Baton Rouge's MovEBR initiative, which aims to improve roads, signals, and other transportation infrastructure. Additionally, the commission made changes to previously authorized gas and fuel tax bonds, increasing the total eligible amount to $1.3 billion.

Transforming the New Orleans Airport and Upgrading Baton Rouge's Roads

Revitalizing the Louis Armstrong New Orleans International Airport

The Louisiana Bond Commission has approved the sale of $620 million in aviation revenue bonds and $220 million in sales tax bonds to fund a comprehensive renovation and expansion of the Louis Armstrong New Orleans International Airport. The commission consented to the sale of up to $575 million in general airport revenue refunding bonds and $45 million in new money revenue bonds for the New Orleans Aviation Board.The refunding bonds will be used to refinance a portion of the existing debt associated with the airport's passenger terminal and other projects, with a final maturity date of 2045. The new money bonds, also maturing in 2045, will finance critical infrastructure upgrades, including a sewer main, a boiler, parking lot improvements, and a runway overlay.These investments will modernize the airport's facilities, enhance the passenger experience, and ensure the continued safe and efficient operation of the airport, which serves as a vital economic engine for the region. The bonds are secured by the airport's revenue streams and have been rated A2 by Moody's, A by S&P Global Ratings, and A by Fitch Ratings, reflecting the airport's strong financial position and creditworthiness.

Improving Baton Rouge's Transportation Infrastructure

In addition to the airport upgrades, the Louisiana Bond Commission also approved a $220 million MovEBR sales tax revenue bond for East Baton Rouge Parish, the Metropolitan Council of the Parish of East Baton Rouge, and the city of Baton Rouge. The proceeds from this negotiated bond sale will be used to construct or improve roads, signals, and sidewalks, as well as add drainage and lighting, and enhance the Advanced Traffic Management Center.This investment in Baton Rouge's transportation infrastructure is part of the city's broader MovEBR initiative, which aims to address long-standing traffic and mobility challenges. By upgrading roads, signals, and other critical components of the transportation network, the city hopes to improve traffic flow, reduce congestion, and enhance the overall quality of life for residents and commuters.

Optimizing Louisiana's Gas and Fuel Tax Bonds

The Louisiana Bond Commission also made changes to the up to $1 billion Louisiana State gas and fuel tax bonds that were previously authorized at its August meeting. The commission added three additional series of bonds (2015B, 2017B, and 2022B) to the tender offer, bringing the total eligible amount to $1.3 billion.Furthermore, the commission increased the maximum size of the anticipated second lien bonds from $250 million to $1 billion, while maintaining the total issuance cap at $1 billion. The anticipated first lien bonds can be for up to $750 million. The final issuance amount will depend on the level of bondholder participation in the tender offer.These modifications to the gas and fuel tax bonds are designed to optimize the state's financing strategy, ensuring that Louisiana can effectively leverage its transportation-related revenue streams to fund critical infrastructure projects across the state. The commission plans to post the preliminary official statement and an invitation to tender on Friday, with the bonds being priced on October 16th.