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San Joaquin Hills TCA
Refinancing Summary
presented to
City of Newport Beach
February 24, 2015
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Transportation Corridor Agencies
I
February 24, 2015
Item No. SS3
San Joaquin Hills and Foothill /Eastern TCA's formed in 1986 as
Joint Powers Authorities
State Legislation gave TCA the authority to collect tolls in 1987
Nonrecourse Toll Revenue Bonds issued to pay for design,
construction and operation of the roads
Tolls are collected to pay back the bonds
■ As one of first new toll roads in California, it became apparent that road would need to be
refinanced after transaction and revenue performance matured.
■ Due to improved transaction and revenue performance and low interest rates, bonds were
successfully refinanced in October, 2014.
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Untendered Non - Callable Series 1997A Bonds
� Series 2014B (Jr.)
300 — Adjusted Net Toll Revenues*
Lower Debt Service
250 Growth Produces
Greater Excess Cash
Flow & Increased
200 Cushion
IM
Series 2014A (Sr.)
—Prior Debt Service
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2015 \ 2020
Projected Net Toll
Revenues > 1.3x
Senior Lien Debt
Significantly Lower Peak
Debt Payment
$186 million (vs $269
million prior peak)
2025 \ 2030 2035 2040 \ 2045 2050
All Series 2014
Bonds Can Be Called
On or After 2025
Without Penalty
* Projection based on Stantec's base case toll revenue forecast
Debt Service
Growth Ends
in 2041
Credit rating upgraded to investment grade on
senior lien bonds from Fitch and S &P
- Restores toll- setting
authority to
the
Board;
T &R study based on
inflationary
toll
versus
prior 10% increases
Lowers debt service growth over the next 10
years from 8.8% to 1.6% and lowers peak debt
service by $83 million
Establishes strong reserves and liquidity which
will enhance the Agency's ability to withstand
future economic downturns
Creates the ability to pay down the debt early