Rubicon Infrastructure Advisors has announced it is the exclusive strategic and financial advisor to Texas Central Partners, LLC and is assisting TexasCentral in its efforts to reach a closing of long-term debt and equity financing for the project.
Texas Central Partners, LLC (TexasCentral), which is undertaking the development of a landmark high-speed passenger rail line between Dallas and Houston, has successfully closed the private placement of an initial US$75 million series of development capital.
Strong investor demand resulted in TexasCentral upsizing its initial US$75 million series from a previously planned target of US$50 million.
This project will implement an efficient and reliable mode of transportation between two of the fastest growing, affluent regions in the U.S., with both Dallas and Houston expected to increase their respective populations of approximately 6 million by as much as 100% by 2035. Assuming no delays, total travel time by air between the two cities can take 2 hours or more and road travel currently takes approximately 4 hours. This project expects to make the trip between the two cities in less than 90 minutes, providing the most comfortable, technology-enabled and productive transportation option in the state.
TexasCentral is developing this project with private equity risk and does not plan to seek grant funding from the public sector to complete or operate the project. The project will be developed with TexasCentral's technology partner, Central Japan Railway (JRC) utilizing JRC's proven, state of the art fifth generation Shinkansen N-700 high-speed "Bullet Train" technology, the safest, most sophisticated and reliable high-speed technology in the world. The N-700 has an impeccable safety record, having been deployed in Japan for over fifty years with no fatalities or serious incidents and an average annual delay time of less than 60 seconds.
The development capital will be used to fund TexasCentral's activities as further design and engineering is undertaken, market studies are completed, environmental safety and technology approvals are sought, rights of way are secured and long-term financing for the project's construction and initial operation is raised. TexasCentral expects to complete the raising of long-term project finance debt and equity by 2017 and anticipates commencing construction shortly thereafter. The project is currently expected to reach commercial operation in 2021.
Timothy B. Keith, Chief Executive Officer of TexasCentral, said:
"With the close of this development capital raise, the project has achieved another critical milestone to realizing true high-speed rail travel in the U.S. This project will not only bring significant employment and economic growth to the Texas economy, but, once completed, will provide Texans with reliable, convenient, fast, safe and comfortable travel between two rapidly-growing regions."
Richard P. Lawless, Chairman of TexasCentral said:
"We are delighted to have achieved this significant stage in our project. We deeply appreciate the leadership shown by our development investors and the support we have received throughout the State and beyond. We look forward to continuing our efforts to bring best-in-class high-speed rail to the citizens of the great state of Texas, a place which has always embraced and supported big ideas."