Case Study

State of Louisiana

 


Estrada Hinojosa Served as Financial Advisor for the Bond Buyer’s “2022 Deal of the Year” for the Southeast Region


On Wednesday, May 11, 2022, Estrada Hinojosa participated in a $3,193,505,000 Louisiana Local Government Environmental Facilities and Community Development Authority, System Restoration Bonds, Series 2022A deal as Financial Advisor to the Louisiana Public Service Commission. The issuance of the Series 2022A Bonds will finance the recoverable system restoration costs incurred to restore its facilities and service to customers following the damage caused by Hurricanes Laura, Delta, Zeta, and Ida and Winter Storm Uri and the re-establishment of the storm damage reserves.

This deal was the largest municipal bond transaction in Louisiana history. The sale was accomplished notwithstanding very difficult and volatile financial markets.  The overall weighted interest rate of 4.28% is approximately half of Entergy’s Weighted Average Cost of Capital of 8.49%, which would have been the carrying charge to finance the storm costs via traditional utility financing.  The total savings from securitization in nominal dollars are estimated at $2.05 Billion.