Fitch Assigns BBB rating to Private Activity Bonds for I-69 P3

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Fitch Assigns BBB rating to Private Activity Bonds for I-69 P3

Fitch Ratings has assigned a rating of BBB to the private activity bonds to be issued by Indiana Finance Authority (IFA) on behalf of I-69 Development Partners LLC, the selected consortium for the project to design, build, finance, operate and maintain I-69 Section 5 from Bloomington to Martinsville.

The bonds issued are: US$3.5 million serial bonds, due 2016; and US$246.5 million term bonds, due 2046. Fitch said the PABs are expected to price on July 8, 2014 and the proceeds will be loaned to I-69 DP to pay a portion of the project's costs. 

More details about the rating assigned to the PABs can be found on Fitch's press release.

The total project investment is estimated at US$325 million.

I-69 Development Partners is a team led by Isolux Infrastructure Netherlands B.VIsolux has partnered with the local contractors E&B Paving of Anderson, Force Construction Company of Columbus and Gradex Inc. of Indianapolis.

Isolux's subsidiary, Corsan-Corviam Construccion S.A., will lead the desing-build team and the joint venture of Arizona-based AZTEC Engineering Group, Inc. and Técnica y Proyectos S.A. (TYPSA) will execute design of the road.

Construction will begin later this year and the 21 new miles of interstate is scheduled to open by the end of 2016, several years ahead of schedule. The RFQ for Section 5 was published on May 23, 2013.

The project will use an availability payment structure and the concessionaire will get remunerated according to its work with operation and maintenance of the road stretch.

The 142-mile I-69 corridor was divided into six independent sections in the Tier 1 Final Environmental Impact Statement, which was approved with a Record of Decision in March 2004.

The first three sections opened for business in November 2012 - under budget and years ahead of schedule - and save motorists more than 30 minutes travel time in the 67 miles between Evansville and Crane. Construction is underway on all 27 miles of I-69 Section 4 between Crane and Bloomington, which is expected to open to traffic in phases during late 2014 and early 2015.

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