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St. Martin Parish Council authorizes up to $4.6 million in refunding bonds
Summary
Council adopted Ordinance No. 21-07-1326-OR to request issuance of revenue refunding bonds not to exceed $4,600,000 to refund Series 2011 bonds (about $4,270,000 outstanding) and pay issuance costs; the parish pledged "Lawfully Available Funds" to secure repayment.
The St. Martin Parish Council on July 6, 2021, adopted Ordinance No. 21-07-1326-OR authorizing the parish to request the Louisiana Local Government Environmental Facilities and Community Development Authority issue revenue refunding bonds in an amount not to exceed $4,600,000.
According to the ordinance, proceeds would be loaned to the parish to refund all or part of the Authority's Series 2011 Bonds (approximately $4,270,000 outstanding) and to pay costs of issuance. The bonds are authorized to mature no later than Oct. 1, 2031, and bear interest not to exceed 5% per annum. The ordinance directs that the parish's "Lawfully Available Funds" be pledged to permit the Authority to make principal and interest payments and authorizes the Parish President and Clerk to execute closing documents and related agreements.
The council approved the ordinance by unanimous roll call. The ordinance also acknowledges selection of Stifel, Nicolaus & Company as the underwriter, subject to the financing parameters, and authorizes preparation and execution of the official statement and ancillary documents.
Why it matters: refunding outstanding debt can reduce the parish's financing costs or modify debt-service timing; the pledge of lawfully available funds secures the loan from the Authority. The action moves the parish toward closing the financing; administrative steps remain, including final bond pricing and execution of the loan agreement.
Next steps: parish and bond counsel will finalize the Loan Agreement, Official Statement and related documents; the parish will notify relevant departments about the pledge of lawfully available funds.
