Louisiana issued $390.9 million in bonds to finance capital improvements and refund previously issued securities.
The state sold the bonds in two series. The Series 2024-A bonds, consisting of $293.8 million, mature between 2025 and 2044, yielding between 2.73% and 4.04%. The Series 2024-B bonds consist of $97.1 million and mature between 2025 and 2027, with yields to be determined. The securities received a rating of Aa2 from Moody’s Investors Service, AA from Kroll Bond Rating Agency, and AA from S&P Global Ratings, which upgraded Louisiana’s rating from AA-.
“The upgrades reflect our view of Louisiana’s demonstrated commitment to improving and maintaining reserves above levels that we consider very strong and the state’s ongoing effort to reduce unfunded pension liabilities through its strong pension funding discipline,” S&P analyst Rob Marker said in a press release.
Moody’s analysts seemed to agree with that assessment. They wrote that their rating reflects Louisiana’s “healthy financial reserves.”
The Series A bonds will fund various capital improvements. The Series B bonds will refund securities Louisiana sold in 2014.
The bonds are general obligations of the state, backed by its full faith and credit.
J.P. Morgan Securities LLC served as lead underwriter on the issuance. Public Resources Advisory Group, Inc acted as municipal advisor.