North Carolina Turnpike finances Triangle Expressway raising $1010m
By Peter Samuel
North Carolina Turnpike Authority (NCTA) have financed their first tollroad, the Triangle Expressway, raising $1,010m. Last Friday they executed a federally supported TIFIA loan for $387m, while on Monday and Tuesday they sold $270m of toll revenue bonds and $353m of state appropriation revenue bonds. The appropriations pledged bonds relate to 25m/yr committed from the state treasury for the project. The revenue bonds are for 30 years and the TIFIA financing is 32 years.
Grady Rankin NCTA chief financial officer says the deal is done but that "there's about two weeks of paper work to finalize everything."
Money should be in hand by month's end.
Work can start within weeks because the Authority has construction contracts ready to sign. No shovels here, this is a dozer-ready project. Completion is hoped for the end of 2012.
NCTA was all set to finance last September but the great financial crisis killed that. Major change made since was to split up the revenue bond financing between toll and state support revenues.
"That was critical. It enabled us to insure the bonds. We started looking at that early in the new year," Rankin said. "The sale Monday was very successful, stronger than we expected."
Reports have the interest rate averaging 4.3%.
BACKGROUND: Triangle Expressway is 30km (18.8 miles) of 2x3 lane expressway in a Y-plan on the west side of the Raleigh-Durham metro area. At its northeastern end it plugs into I-540, a partial belt route. Like most new tollroads it is being build with all electronic tolling - no cash toll collection.