Louisiana to sell $500 mln in bonds; assures on oil spill costs
NEW YORK, Feb 7 (Reuters) - New municipal bond issuance is
set to fall to around $3.3 billion next week, with the state of
spill in the Gulf of Mexico before a planned sale of nearly $500
million of state-backed debt.
Louisiana's sale of general obligation bonds, slated for
Tuesday, includes nearly $350 million in tax-exempt bonds and
$150 million in taxable bonds. It is expected to be the biggest
deal of the week.
The preliminary official statement includes an assurance
from the state that it will continue to recoup all costs related
to the Deepwater Horizon oil spill in 2010. The cost of the
cleanup could reach more than $40 billion.
"The state is continuing to measure these impacts and will
seek recovery from BP and the responsible parties," according to
the document released Monday.
A year after agreeing to a multibillion dollar settlement
with victims of the oil spill, BP, the oil company behind
the spill, is aggressively challenging terms of the deal.