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Louisiana moving ahead with $335M bond sale Wednesday

BATON ROUGE, La. — Despite budget question marks and the collapse of a recent Louisiana State University bond sale, Louisiana is moving ahead with its own $335 million borrowing plan.

The State Bond Commission planned a general obligation bond sale Wednesday, asking investors to give the state upfront cash to replenish its construction project fund.

Treasurer John Kennedy said the state has disclosed its budget uncertainties in the paperwork for possible investors, and he expects the deal to move forward.

But the state’s financial questions could lead to less favorable terms for the bond sale. LSU stopped nearly $115 million in planned borrowing two weeks ago as investors pulled out of the deal amid concerns over the university’s financial instability.

Kennedy said the state will run out of funds for some construction work without the borrowing.

In related news, Credit agency says Louisiana budget has ‘structural deficit’.

 

This article was from The Associated Press and was legally licensed through the NewsCred publisher network.

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