The Louisiana Offshore Terminal Authority remarketed $175.5 million in bonds to refund previously issued securities.
The authority remarketed three series of bonds, originally issued in 2007 and 2013. The bonds will now mature in 2027, 2033, and 2034, with interest rates ranging from 4.15% to 4.2%. The securities received a rating of A3 from Moody’s Investors Service and A- from Fitch Ratings.
“The proceeds derived from the remarketing of the Bonds will be used to pay the purchase price of the Bonds upon their mandatory tender for purchase on December 1, 2023,” the official statement accompanying the sale of the bonds reads.
The issuance is backed by certain rights of the Louisiana Offshore Oil Port (LOOP), which is partially owned by three major oil companies: Shell USA, Inc, Valero Terminaling and Distribution Company, and Marathon Petroleum Company LP.
Several large oil companies recorded their most profitable years of all time in 2022, despite urgent calls from climate scientists and environmental activists to phase out fossil fuels. Shell and Valero each saw their profits reach record highs last year.
LOOP is a deepwater port about 18 miles off the coast of Louisiana. It handles about 13 percent of foreign crude oil entering the United States.
The bonds are limited obligations of the authority, payable by a promissory note between the authority and LOOP.
J.P. Morgan Securities LLC served as lead remarketing agent on the issuance.