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| Cintra advances with financing NTE through a $400 million bond issue NTE Mobility Partners LLC, which is majority-owned by Spanish firm Cintra, has issued bonds amounting to 400 million dollars (close to 270 million euro) as part of the funding for the North Tarrant Express Managed Lanes project. The contract consists of the construction, maintenance and operation of 21.4 kilometres of the North Tarrant Express toll road in the Dallas-Fort Worth area. It will require a total investment of 2 billion dollars (1.36 billion euro). The tax-exempt Private Activity Bonds (PAB) were placed in the United States municipal bond market. The issue, which offers an average yield of 6.98%, is a milestone in that it is the first use of PABs by a private road concession. Two separate bonds were issued: 59.8 million dollars paying a 7.5% coupon and maturing on 31 December 2031, and 340.2 million dollars paying a 6.875% coupon and maturing on 31 December 2039. The issue was met with a very good reception in the market, where it was oversubscribed 2.4 times. It was underwritten by a syndicate of banks headed by JP Morgan and Merrill Lynch. The NTE consortium is headed by Cintra (which owns 56.7%), with Meridiam (33.3%) and the Dallas Police and Fire Pension System (10%). write your comments about the article :: © 2009 Construction News :: home page |