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Commission approves LCDA and port financing, and refinancing for Baton Rouge student housing project
Summary
The commission approved three political-subdivision bond items: LCDA Vermilion Parish School Board revenue bonds, LCDA Terrebonne Port Commission purchase bonds, and a $45 million revenue bond refinancing for Baton Rouge Student Housing LLC to restructure distressed student-housing debt.
The State Bond Commission on May 15 approved three political-subdivision bond items covering school, port and student-housing projects.
Staff recommended approval of item 38 for the Louisiana Community Development Authority (LCDA) on behalf of the Vermilion Parish School Board for up to $20,000,000 in revenue bonds to fund various improvements. Item 39 was an LCDA request for the Terrebonne Port Commission for up to $7,100,000 in revenue bonds to purchase four industrial buildings (about 24 acres) from CNM Manufacturing; staff said the port purchase would assist CNM Manufacturing with selling the business to new owners and that the project is on DOTD's proposed 2026–27 port priority list but has not yet received final approval from the House and Senate Transportation Committees. Item 40 was for LCDA on behalf of Baton Rouge Student Housing LLC for up to $45,000,000 in revenue bonds to refinance 2003 bonds, repay advances and insurance claims made when the bonds were in default, reimburse Emmett Capital for capital improvements, and fund additional capital improvements to address deferred maintenance.
Staff provided historical context for the Baton Rouge student-housing financing: the original bonds funded construction in 2003; those bonds defaulted in 2006 after operating losses attributed to construction delays, cost overruns and hurricane-related damages; in 2019 Emmett Capital acquired the bonds and invested capital and management efforts to improve operations. Staff said the borrower is current on debt service and the facility (about 276 units and roughly 560 beds) is near full occupancy. The record notes the refinancing would be structured as unrated securities sold in a limited public offering and that the amended marketing agreement with Southern University would need approval by Southern's Board of Supervisors before the financing can proceed.
Representative Reiser moved approval of items 38 through 40; the motion was seconded and approved by voice vote with no roll-call tallies in the transcript.
Why it matters: Approval allows ports and educational landlords to pursue property acquisition and to restructure distressed debt for a student housing facility. The Baton Rouge refinancing is a private-debt restructuring that staff said would provide about $1,400,000 in annual debt-service relief over the next 10 years by extending maturities 19 years.
Details: Staff emphasized the transaction risks will be disclosed in a preliminary limited offering memorandum and that proceeds are a borrower obligation, not a pledge of the university or the state's faith and credit.
