BATON ROUGE, La. (AP) - Louisiana has refinanced $377 million in debt, saving the state millions in annual payments by getting a lower interest rate.
State Treasurer Ron Henson’s office announced Thursday that the refinancing will free up more than $54 million for infrastructure projects. Annual savings in debt repayment will range from $1.5 million to $2.7 million through 2045, while the principal debt also will drop.
The state sells bonds to investors for upfront cash for projects.
The bonds that were refinanced this week, originally issued in 2010 and 2012, are called Gasoline and Fuels Tax Revenue Bonds. They’re used to pay for highway and bridge projects, and the savings must be used to pay for similar projects.
Henson’s office says the refinancing deal will close on Aug. 30.
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