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Purple Line funding includes $367 million green bonds, loan and equity
By Lisa Kerner
Charlotte, N.C., June 17 – Purple Line Transit Partners, LLC’s financing for its Purple Line project includes $367 million of green bond proceeds from designed private activity bonds underwritten by JP Morgan and RBC Capital Markets Corp.
The bonds, supported by contracts backed by the investment-grade credit ratings of the Maryland Commonwealth Transportation Trust Fund and Fluor Corp., were sold at the lowest interest rates ever achieved in the U.S. P3 market, according to a news release.
The financing also includes an $875 million TIFIA loan from the Dept. of Transportation.
Meridiam will be a 70% equity provider. Fluor Enterprises, Inc. and Star America Purple Line, LLC will each provide 15% of the equity.
Maryland Economic Development Corp. sold $312.42 million of series 2016 Purple Line Light Rail project private activity revenue bonds to fund the project.
The deal included $100 million of series 2016A bonds, $23.32 million of series 2016B bonds, $27.48 million of series 2016C bonds and $161.62 million of series 2016D bonds.
The 2016A bonds are due March 31, 2024 and have a 5% coupon priced at 116.04 to yield 1.89%.
The 2016B bonds are due Sept. 30, 2026 and have a 5% coupon priced at 114.866 to yield 2.10%.
The 2016C bonds are due 2025 to 2028 with 5% coupons and yields from 2.04% to 2.24%.
The 2016D bonds are due 2023 to 2032 with term bonds due in 2036, 2041, 2046 and 2051. The serial bonds have 5% coupons and yields from 1.94% to 2.78%. The 2036 bonds have a 5% coupon priced at 119.145 to yield 2.84%.The 2041 bonds have a 5% coupon priced at 118.851 to yield 2.87% and the 2046 bonds have a 5% coupon priced at 118.655 to yield 2.89%. The 2051 bonds have a 5% coupon priced at 117.874 to yield 2.97%.
J.P. Morgan Securities LLC was the senior manager for the bonds (/BBB+/BBB+).
The $2 billion Purple Line Light Rail Project will extend from Bethesda, Md. to New Carrollton, Md. and have 21 stations. It is scheduled to begin service in 2022.
Purple Line Transit Partners is comprised of Meridiam, Fluor Enterprises Inc. and Star America Purple Line, LLC.
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