Posted: Jan 17, 2013 11:44 AM
Source: Associated Press
BATON ROUGE - Louisiana is paying $108 million to get out of a deal that helped rebuild and upgrade the Superdome in New Orleans after Hurricane Katrina, but that exploded in interest costs.
The State Bond Commission received the final details Thursday of the debt refinancing for the Louisiana Stadium and Exposition District that includes the termination payment to end the previous arrangement.
The LSED is borrowing $361 million to restructure the bond deal from 2006 that became saddled with problems as part of the credit crunch and financial downturn two years after the deal was struck.
The $108 million termination penalty will be rolled into the refinanced borrowing and paid off over decades with the rest of the debt. The arrangement also ends litigation with Merrill Lynch over the previous arrangement.