The NTTA sold more than $400 million in bonds on Oct. 23 to complete the refunding of the Bond Anticipation Notes (BANs), which were issued in November of 2007 to provide the $3.2 billion upfront payment to the Texas Department of Transportation (TxDOT) for the right to construct, maintain and operate State Highway (SH) 121 for 50 years.      

 

“Over the course of the last year, NTTA has not only completed long-term SH 121 financing but positioned itself financially to advance other North Texas projects,”  said Paul N. Wageman, chairman of the NTTA Board of Directors.  “SH 121 funds have already been put to work to advance a multitude of projects in the region.”

 

Approximately $300 million was needed to complete the long-term financing of SH 121 including takeout of the BANs.  Because of the positive market reception, NTTA increased the bond sale to $425 million with an average yield of 5.99 percent. The remainder of the bond sale proceeds will be used to finance other NTTA capital projects. The final bond sale closed on Nov. 4.  

 

“Given the unprecedented market volatility, it's a real credit to the NTTA for having moved quickly to position this transaction for pricing at the first possible market opportunity," said Jamison Feheley, director with Citigroup Global Markets, the book-running senior manager on this issue. "The success of this transaction during these turbulent times demonstrates the market's confidence in the Authority's board and management.  In a market currently dominated by high grade credits, the success of this transaction was a breakthrough for an intermediate credit and will hopefully lead the way for other issuers to follow."