The Transportation Corridor Agencies (TCA) announced yesterday that the San Joaquin Hills Transportation Corridor Agency (SJHTCA) has executed an early paydown of $200 million in junior lien bond debt. “The early paydown of bond principal – bonds that were issued in 2014 and had maturity dates of 2044 and 2049 – saves [SJHTCA] approximately $203 million in interest payments.” The agency used cash reserves to pay off the bonds when they recently became callable.
The TCA boards have an “Early Bond Paydown Program,” a multiyear plan to buy back agency debt through 2030. By that date, SJHTCA and its sister agency, the Foothill/Eastern Transportation Corridor Agency, expect to to pay down another $720 million of bonds early. Collectively, the debt reductions will amount to $3.1 billion.