Lake Charles port board authorizes up to $40 million in revenue bonds to bridge Hurricane Laura repairs

The Lake Charles Harbor and Terminal District on Feb. 26 approved a resolution authorizing the issuance of revenue bonds "not to exceed $40,000,000" to support capital projects tied largely to repairs from Hurricane Laura.

Staff presenting the resolution told commissioners the $40 million figure is a conservative cap suggested by bond counsel and said the district does not anticipate needing the full amount. "That was another significant reason why we wanted to do this now," staff said, adding the board had prepared a five-year cash analysis showing potential short-term cash needs toward the end of the year.

John Morris of Jones Walker, the board’s counsel, described the measure as a reimbursement-authorization resolution that "allows the port to capture expenditures, actually, from 90 days before now through the issuance of the bond" and to reimburse those expenses with bond proceeds when the bonds are issued. He said district revenues — including FEMA funds, state funds and capital outlay — would secure the bonds.

The resolution also authorizes filing an application with the State Bond Commission and employing bond counsel and a financial advisor. Staff noted the district had a financial advisor available by conference call. The submission specified a maximum term of 10 years, though staff said they expect any borrowing to be for a shorter term and a lower amount.

Commissioners approved the submission by motion and voice vote, with board counsel confirming that recording who was present and absent sufficed rather than a roll-call voice tally. The chair also noted a named commissioner was absent for the vote.

Next steps include submitting the application to the State Bond Commission and completing the bond documentation and related steps if short-term financing is needed.