Archdiocese of New Orleans RefinancingNews | April 11, 2017
Kutak Rock served as counsel to the underwriters in connection with the issuance by the Louisiana Public Facilities Authority (the “Authority”) of $41,895,000 aggregate principal amount of Refunding Revenue Bonds (Archdiocese of New Orleans Project) Series 2017 (the “Bonds”). The Bonds were issued on April 4, 2017 on behalf of The Roman Catholic Church of the Archdiocese of New Orleans (the “Corporation”). Founded in 1941, the Corporation, together with a significant number of archdiocesan churches, parishes, schools, nursing homes and other community service facilities and agencies, make up the Archdiocese of New Orleans.
The proceeds of the Bonds were used, together with other available moneys, to (a) current refund all of the Authority’s outstanding Revenue and Revenue Refunding Bonds, Series 2007 issued in the total aggregate principal amount of $69,150,000 and currently outstanding in the aggregate principal amount of $57,630,000 (the “Refunded Bonds”) and (b) pay costs of issuance of the Bonds (the “Refunding Project”). The Refunded Bonds were issued to provide funds to (a) current refund all or a portion of the Authority’s (i) outstanding Equipment and Capital Facilities Pool Loan Program Revenue Bonds, Series 2001A and (ii) outstanding Equipment and Capital Facilities Pool Loan Program Revenue Bonds, Series 2002C issued on behalf of Chateau de Notre Dame and Wynhoven Health Care Center, (b) finance or refinance the reconstruction, rehabilitation, restoration, construction, furnishing, improving, and equipping of school buildings, office buildings, nursing homes and other facilities owned and operated by the Corporation and/or Archdiocesan related Louisiana nonprofit corporations, (c) fund capitalized interest, (d) fund a debt service reserve fund and (e) pay costs of issuance of the Refunded Bonds.
The Archdiocese of New Orleans is the second oldest archdiocese in the United States and covers 4,208 square miles in the State of Louisiana. The Archdiocese was established as a diocese in 1793 and became an archdiocese in 1850. In 1941, the Roman Catholic Church of the Archdiocese of New Orleans was incorporated as a nonprofit corporation under the laws of the State of Louisiana, and the Corporation is an organization classified under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. The Corporation, together with other separately incorporated entities, make up the Archdiocese of New Orleans (the “Archdiocese”). The Archdiocese currently operates in the eight civil parishes in the metropolitan New Orleans area and consists of 111 church parishes in the State of Louisiana. The Corporation provides administrative support to the church parishes and to 84 schools with an estimated fall enrollment for the 2016-17 school year of 37,050 students. These schools include parish-owned elementary schools, religious order schools and eight high schools and two special needs schools owned by the Corporation. The Corporation also provides administrative support for separately incorporated nursing homes, affordable senior living facilities and other community service facilities consistent with the mission of the Archdiocese.
The Authority was created in 1974 for the benefit of the State of Louisiana. The Authority is a public trust and public corporation organized pursuant to the laws of the State of Louisiana and is governed by seven trustees who are appointed for staggered terms by the Governor of the State of Louisiana. The Authority has no taxing power and receives no appropriations from the State of Louisiana or any governmental body. The Authority is not organized for profit, and no part of its net earnings may inure to the benefit of any private person. The purposes of the Authority are to promote and encourage a wide range of public and industrial activities within the State of Louisiana. The Authority is authorized to issue revenue bonds and use the funds derived from the sale thereof for the purpose of providing, among other things, (i) hospital, medical, health, nursery care, nursing care, clinical, ambulance, laboratory, and related services and facilities; (ii) educational services and facilities and related housing and dormitory services and facilities; (iii) cultural and civic facilities, services and activities; and (iv) community development and redevelopment facilities and activities, and to issue its refunding bonds to refinance its revenue bonds. The Authority also has general powers which include the powers to enter into, make and perform contracts of every lawful kind to accomplish its purposes.