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Stradling

Public Finance Team Represents 73 Toll Road in $1.4 Billion Refinancing

According to a press release issued by the San Joaquin Hills Transportation Corridor Agency, the organization reports successfully refinancing $1.4 billion of its $2.2 billion in outstanding debt issued to fund construction of the 73 Toll Road. The bond issue was well received by the market with $2.5 billion in orders for a bond issue sized at $1.4 billion reflecting the 73 toll road's performance, rating upgrade and confidence in the credit profile.

Stradling's public finance team, led by John Murphy, represented the Agency as bond counsel on the transaction. Other members of the team include Carol Lew, who coordinated one of the most complex tax analysis seen in the muni bond arena in recent years, Kevin Civale, who headed up an extremely successful tender for the Agency's non-callable bonds, and Brian Forbath, who assisted in all aspects of this engagement. Successful completion of the transaction required the solicitation of consents to indenture amendments from the owners, the insurer of the Agency's bonds, and the upgrading of the Agency's credit ratings. As outlined in the story, the savings to the Agency and the users of its toll road substantially exceeded the Agency's goals - not only was the overall debt service structure made sustainable, annual debt service in the peak year was reduced by over $80,000,000.