Fitch expects to assign BBB- rating to Goethals Bridge TIFIA loan and PAB bonds
New Goethals BridgeThis article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.
Fitch Ratings expects to assign a 'BBB-' rating to the $457 million series 2013 tax-exempt private activity bonds (PABs) to be issued by the New Jersey Economic Development Authority on behalf of NYNJ Link, the developer selected to build the Goethals Bridge Replacement Project.
Additionally, Fitch expects to assign a 'BBB-' rating to the approximate $480 million Transportation Infrastructure Finance and Innovation Authority (TIFIA) loan to NYNJ Link.
The PABs are expected to price in November 2013. The TIFIA loan is expected to be executed in November 2013.
The project, based on availability payments, present low operational risk according to Fitch. The developer, formed by Macquarie Infrastructure and Real Assets (MIRA) (90% interest) and Kiewit Development Company (KDC) (10% interest), has extensive experience managing assets in the public private partnership space.
Fitch said that the debt service profile consists of fixed rate debt with no refinance risk and the covenant package is considered to be adequate. The firm considers that coverage ratios are sufficient but the project presents high leverage (16x net debt to cash flow available for debt service in 2018). NYNJ Link LLC will be contributing equity of $113 million or 9.2% of total project cost.
The contractor formed by Kiewit Infrastructure Co. (70%), Weeks Marine Inc. (15%), and Massman Construction Co. (15%)is considered to have significant experience with similar projects. Additionally, the security package includes parent guarantee from Kiewit Infrastructure Group Inc.
The PABs will be secured by a first priority lien on NYNJ Link net revenues. The TIFIA Loan will be secured on a subordinate basis.
Construction is expected to take 50 months from financial close followed by a 35-year operating period. The project involves the design, construction, financing, operation, maintenance and rehabilitation of a replacement Goethals Bridge connecting Staten Island in New York City with Elizabeth in New Jersey as well as the demolition of the existing Goethals Bridge.
The project includes the construction of a new six-lane cable-stayed main span bridge, construction of new approach structures and realignments to link to the existing road network and the demolition and removal of the existing Goethals Bridge. While both the existing bridge and the replacement bridge will be tolled, the tolls are to be collected and retained by the PANYNJ and are not pledged as part of this financing.
Country news
-
-
October 29, 2013
Preferred bidder selected for Gary Airport P3
The Ad Hoc Committee of the Gary/Chicago International Airport Authority, appointed to evaluate public-private partnership (P3) proposals to invest in the airport and the surrounding area, last week announced it has entered into exclusive negotiations with Aviation Facilities Company Inc./AvPORTS (AFCO). Read more -
October 31, 2013
Partners Group raises $716 million for infrastructure fund
Switzerland-based private equity manager Partners Group has closed on $716.5 million for its latest infrastructure vehicle, according to a filing with the U.S. Securities and Exchange Commission . Read more -
October 31, 2013
Patton Boggs strengthens infrastructure team in New York & Washington DC
Patton Boggs has established a public finance practice and significantly enhanced its private fund investment and infrastructure transactions capabilities with the addition of four prominent attorneys - three in its New York office and one in Washington DC.Joining the firm in New York are Alphonso E. (Al) Tindall, Jr., Sani A. Williams and Deborah Hartmann Henry. Joining the firm in Washington DC is Alethia N. Nancoo. Ms. Nancoo and Mr. Tindall join as partners, while Mr. Williams and Ms. Henry join as of counsel. The group brings extensive experience in international, domestic and municipal public and project finance, private fund investment and infrastructure transactions and matters. Read more -
November 04, 2013
Three teams shortlisted for $1.5 billion Project Neon in Nevada
The list of shortlisted proposals for the US$1.3-1.5 billion project follows: Las Vegas Paving Corp. and Macquarie Capital Group Kiewit Development Co. and Meridiam Infrastructure ACS Infrastructure Development, Fengate Capital Management and Star America Fund GPSpanish infrastructure developer, Cintra Infraestructuras, S.A., has been the only team not qualifying for the next stage of the tender process. Read more -
November 04, 2013
Virginia's Supreme Court gives green light to Midtown Tunnel P3
The Supreme Court of Virginia on Thursday unanimously rejected a legal challenge to the Midtown tunnel P3 project, clearing the way for tolls to begin February 1. Read more
