Louisiana's East Baton Rouge Selling $199 Million of Sales Tax Revenue Bonds

By Stephen Nakrosis

Louisiana's Parish of East Baton Rouge is set to receive $199 million in bond proceeds to help fund repairs to roads, buildings and infrastructure.

Proceeds will also finance work on sidewalks, traffic signal synchronization in the parish's communities, and issuance costs.

The parish's Capital Improvements District will sell the Series 2024 MoveEBR Sales Tax Revenue Bonds, according to a preliminary official statement posted Friday on MuniOS. The bonds will mature from 2025 through 2048, and the district will also issue two term bonds as part of the sale whose maturity has yet to be determined. They district can redeem the bonds after Aug. 1, 2035.

Pricing information, dates of sale and settlement for the transaction were unavailable.

The bonds are limited special obligations of the district, and are expected to be exempt from federal and state taxes. The debt is backed by a pledge of revenue the district collects from a 0.5% sale and use tax approved by voters in 2018. The district collected $53.4 million from the tax last year.

Moody's Ratings has given the bonds a rating of Aa2, while S&P Global Ratings has rated them at AA+.

Stifel and Loop Capital are listed as the offering's lead managers.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

September 27, 2024 19:10 ET (23:10 GMT)

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