Bonds price for I-66

02 November 2017 - 12:00 am UTC

Virginia’s I-66 P3 on 9 November reached financial close at approximately 11:00am (EST), Inframation has learned.

The USD 737m in private activity bonds (PABs) supporting Virginia’s I-66 toll road project priced on 2 November, as Inframation previously reported. 

A source familiar described the pricing as “having gone exceedingly well,” and noted that the PABs received over USD 5bn in orders. 

The order book for the 2056 maturity totaled 66, the source said. The order book comprised mainly US investors and “the usual US tax exempt, high yield investors,” the source added. 

The bonds were issued by the Virginia Small Business Financing Authority. They have four maturities as indicated in the table below. 
 

Principal amount at issuance Maturity Yield
30.88m 12/31/2047 3.71%
130.90m 12/31/2049 3.79%
222.44m 12/31/2052 3.90%
352.79m 12/32/2056 4.00%

The average weighted life is 35 years, as previously reported. BAML and Citi are the underwriters.  

Moody’s in October rated the bonds Baa3 – stable. Fitch issued a BBB – stable rating. 

The transaction as reported is also financed through USD 1.5bn equity and a USD 1.22bn TIFIA loan.  

The equity breakdown of the sponsors according to the POS is: Cintra (50%); Meridiam (26.7%); APG (13.3%); and John Laing (10%). 

Financial close is slated for 9 November.

More information on the transaction can be seen here.