Tobacco bond refinancing done, generates $83M
BATON ROUGE - Gov. Bobby Jindal's administration has refinanced Louisiana's tobacco settlement bonds, though the state received significantly less money than expected through the deal.
Jindal's top financial adviser, Commissioner of Administration Kristy Nichols, announced Tuesday that the deal was done.
Instead of the more than $140 million in upfront cash expected by the refinancing, the state got $83 million.
Treasurer John Kennedy had urged the administration to slow down the refinancing for further talks with lawmakers since the savings estimates had changed. But Nichols didn't agree, saying the deal was still a good one for the state.
If the refinancing had been postponed, it could have created budget problems. In the current fiscal year, $67 million from the bond deal is plugged into the TOPS free college tuition program.