The Louisiana State Bond Commission recently approved three bond issues totaling more than $3 billion. One of the approved bond issues includes a $1.33 billion bond to be backed by tolls on the I-10 Calcasieu River Bridge. This bridge, located in Lake Charles, is set to be replaced by the Department of Transportation and Development and Calcasieu Bridge Partners LLC. The bond may be raised to $2 billion if necessary, according to Cassie Berthelot, assistant director with the commission. JPMorgan and Wells Fargo Bank were chosen as underwriters for the bonds, which will be issued by the Louisiana Public Facilities Authority. The bridge toll revenue will provide repayment funds, with the private partners bearing the risk of toll collections being insufficient to cover required debt service payments. The private partners will also operate the DOT-owned bridge for 50 years.
In addition to the bond for the I-10 Calcasieu River Bridge, the commission approved a state general obligation (GO) bond of up to $1 billion. This bond will be used to refund $124 million in Series 2014D1 and 2014D2 bonds, refund tendered bonds, and possibly forward delivery of all or part of $221 million in Series 2015A and 2015B bonds. The amount of investor participation in the tender will determine the size of the refunding. The commission plans to post an invitation to tender bonds on Aug. 2 and price them on Aug. 20, with the bond deal likely being under $1 billion.
The commission also gave preliminary approval for a state gasoline and fuel tax revenue refunding bond of up to $1 billion. Final approval for this bond is expected to be sought at the Aug. 15 commission meeting. The bonds received unanimous approval from the commission members.
The total estimated cost of the project, including state, federal, and private funds, is approximately $3.1 billion. These bonds will play a crucial role in financing the replacement of the I-10 Calcasieu River Bridge and refunding existing bonds. With the unanimous approval from the commission, the projects are set to move forward, benefiting the residents and commuters in Louisiana.