North Texas Tollway succeeds with longterm financing of 121 Tollway - sells $425m bonds at 5.99%

North Texas Tollway Authority (NTTA) have announced that they've succeeded in the completing the longterm financing of the $3.2b concession fee they paid Texas Department of Transportation for the 50 year right to toll the 28 mile (45km) section of SH121 north of Dallas now known as 121 Tollway. To make the $3,200m upfront payment to the state on the toll concession last November NTTA issued a set of short term bond anticipation notes (BANs) which are now expiring.

The last of the $300m of BANs to be converted to longterm debt was successfully covered this morning by $425m of bond sales at 5.99%. The $125m extra is available at 6.01% to North Carolina or any other reputable toll agency having financing difficulties but able to find a bond insurer still standing, a spokesman said. (We made that up. They'll use the surplus raising on other projects of their own. Editor)

The NTTA bond sale is due to close Nov 4.

The bonds have a term of 30 years.

Jamison Feheley, Director with Citigroup Global Markets, senior manager on this issue is quoted: “Given the unprecedented market volatility, it's a real credit to the NTTA for having moved quickly to position this transaction for pricing at the first possible market opportunity. The success of this transaction during these turbulent times demonstrates the market's confidence in the Authority's board and management. In a market currently dominated by high grade credits, the success of this transaction was a breakthrough for an intermediate credit and will hopefully lead the way for other issuers to follow."

Barclays Capital and Citigroup Global Markets are the senior managing underwriters for the bonds. Estrada Hinojosa & Company Inc, First Southwest Company, Morgan Keegan & Co Inc, M R Beal & Company, Southwest Securities and Wachovia Bank, National Association are the co-managers. RBC Capital Markets is the NTTA's financial advisor and their subcontractor is TKG & Associates. McCall, Parkhurst & Horton LLP and Simmons Mahomes PC are co-bond counsel.

Paul N Wagerman chairman of the NTTA is quoted: "Over the course of the last year, NTTA has not only completed long term SH 121 financing but positioned itself financially to advance other North Texas projects."

TOLLROADSnews 2008-10-24 (AMENDED 2008-10-25 13:30)