Financial Close reached for US-36 road P3 project
- Fitch Ratings
- Goldman Sachs Bank
- Granite Construction Company
- HDR Engineering
- Plenary Group
- Transfield Services
The Colorado Department of Transportation (CDOT) has announced that the US 36 Express Lanes/Bus Rapid Transit project has achieved financial close.
The project will be developed on a design, build, finance, operation and maintenance (DBFOM) basis. The agreement will be structured as a toll concession and will have a term of 50 years.
The project has been financed with the following structure:
- US$20.4 million of series 2014 tax-exempt private activity bonds to be issued by the Colorado High Performance Transportation Enterprise (HPTE) on behalf of Plenary Roads Denver, LLC. Fitch Ratings gave it a 'BBB-' rating.
- US$60 million Transportation Infrastructure Finance and Innovation Authority (TIFIA) subordinate project loan to Plenary Roads for Phase 2 of the US 36. Fitch gave it a 'BBB-' rating.
- US$20.6 million junior subordinate loan from Northleaf Capital.
- As part of the Plenary Roads financing plan, the outstanding US$55.4 million senior TIFIA loan to HPTE, issued in conjunction with Phase 1 of the US 36 and also rated 'BBB-,' will be assumed by Plenary Roads upon successful completion of Phase 1 of the project.
Final pricing for the PABs provided an all-in average interest cost of 5.94%. The interest rate on the Phase 2 Loan is 3.68%.
The Plenary-led team will construct six miles of existing US36 from 88th Street to Table Mesa and add a managed lane in each direction. The concessionaire will also be responsible for operations and maintenance of managed lanes in the complete US 36 corridor and the existing I-25 Express Lanes.