Transurban refinances 495 Express Lanes

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Transurban refinances 495 Express Lanes

Transurban has announced Capital Beltway Express  LLC  (CBE)  has  reached  financial  close  on  a US$225 million facility to refinance the Letters of Credit which supported the 495 Express Lanes’ senior secured Private Activity Bonds. CBE operates the 495 Express Lanes and is 100% owned by Transurban.

Transurban and J.P. Morgan have developed a refinancing structure whereby J.P. Morgan becomes the sole holder of the Private Activity Bonds for a fixed term of five years. This structure removes the Letters of Credit supporting these bonds.

The successful completion of the refinancing achieves the following outcomes for 495 Express Lanes:

•    lowers the all-in cost of the debt;
•    locks in competitive pricing for 5 years as the asset continues through ramp-up;
•    maintains the benefits of the Private Activity Bond structure; and
•    reduces refinancing risk.

In February 2014 we informed that Transurban was restructuring US$430 million in debt for the Interstate 495 project in Virginia, United States and making an equity call to investors to put more money into the lanes.

The 495 Express Lanes opened in November 2012 after a six-year construction period. Transurban controls the Interstate 495 lanes until December 2087.

Transurban CFO Adam Watson said:

“We are pleased to have extended the tenor and reduced the overall cost of the financing."

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