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Louisiana is paying $108 million to get out of a deal

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 which resulted in soaring interest costs as the economy soured. The State Bond Commission received the final details Thursday of the debt refinancing for the Louisiana Stadium and Exposition District, including the termination payment to end the previous arrangement with Bank of America Merrill Lynch. The Louisiana Stadium and Exposition District is borrowing $361 million to restructure the bond deal from 2006; it became saddled with problems as part of the credit crunch and financial downturn two years later. "The bond sale was held this week, with $311 million bought publicly and another $50 million bought by the state. All the borrowing will be paid off by 2039. However, on the lighter side, the Superdome will be the site of Super Bowl 47 February 3rd.

 

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