Fact Sheet: Triangle Expressway
Wake – Durham, NC
Approved FY 2009
Project Sponsor
http://www.dot.state.nc.us/
North Carolina Turnpike Authority (NCTA), a body politic and corporate of the State of North Carolina that is located with the North Carolina Department of Transportation for administrative purposes.
Description
The Triangle Expressway Project, located in one of the fastest growing regions in the state, will consist of 18.8 miles of expressway to provide near-term congestion relief on existing north-south routes serving the Research Triangle Park (RTP) region (including I-40) as well as improve commuter mobility, accessibility and connectivity to the RTP employment center. The project encompasses two new segments: Western Wake Freeway and Triangle Parkway and an existing segment NC I-540P, which together will be one contiguous, fully controlled, access tolled highway whose alignment will be parallel to and west of NC 55.
Project Status
NC I-540P opened in July 2007. The new segments will be constructed utilizing a series of five design-build contracts that were awarded by NCTA in August 2008. The NCTA expects to open Triangle Parkway along with the existing NC 540P as toll facilities in the fall of 2012. The Western Wake Freeway is scheduled to open in the fall of 2013.
Funding Sources
Estimated funding sources
- Senior Appropriation bonds: $266,096,924.00
- Senior Toll Revenue bonds: 343,300,000.00
- TIFIA loan: 386,662,363.00
- State funds: 175,644,843.50
- Total: $1,171,704,131.00
TIFIA Credit Assistance
Direct loan: $386,662,363.00
Date of credit agreement: July 10, 2009
The requested TIFIA loan will be issued on a subordinate basis to the senior lien toll revenue bonds. Fitch Ratings has assigned a rating of BBB- to the senior lien toll revenue bonds, as well as the TIFIA debt, and AA- to the senior lien state appropriation bonds.
TIFIA Financial Performance
The TIFIA Term Sheet was executed June 29, 2009, and the TIFIA Loan Agreement was executed on July 10, 2009. The first disbursement is scheduled for August 2009. The TIFIA interest rate on the loan is 4.25 percent. The first interest payment is scheduled for January 2015. Partial principal repayments are scheduled to begin in January 2016. Loan amortization begins January 2025. The final maturity of the TIFIA loan is June 2043. There will be debt service reserve funds in place for both the senior bonds and the TIFIA loan.