BATON ROUGE – Today, Commissioner of Administration Angele Davis touted the results of two bond sales undertaken by the State of Louisiana related to the financing of state construction projects.

The State Bond Commission today received bids from eight firms competing to underwrite $200 million in “new money” General Obligation bonds, with the winning bid awarded to Barclay’s Capital at an interest rate of 3.947 per cent.

In addition, the state refunded $125 million in 1998 G.O. bonds, with the winning bid awarded to J.P. Morgan Securities.  The refinancing means the state’s interest rate will change from between 4.3 and 5.5 percent to 1.499 percent, bringing savings to the state of more than $1 million per year for the remaining four years of the bond.

Commissioner Davis said, “These results confirm that Louisiana is viewed as an attractive investment.  The success of this bond sale, like the recent credit rating upgrades for the state, is an affirmation of the sound fiscal management and economic growth policies we have been pursuing.  The sale also shows that even though we’re facing a tough budget cycle, we’re still able to invest in important infrastructure projects throughout the state.”

Commissioner Davis added, “Any time you get three bidders, it's a good sign and a good sale.  We had eight.  The greater the number of bidders, the greater the competition, and the better the deal, and savings, for Louisiana.  The result was an interest rate on the new bond under 4 percent, and under 1.5 percent for the refunding bond, which are both very, very good terms.”

Earlier in October, Fitch Ratings and Standard & Poor's Ratings Services upgraded Louisiana’s bond rating, and Moody’s Investors Services raised the outlook on Louisiana’s credit from “stable” to “positive,” citing, among other things, strong state government financial management, a commitment to streamlining government, and strength in the state’s economy and economic development efforts.