Kentucky Public Transportation Infrastructure Authority is the issuer
FRANKFORT, Ky. (Nov. 26, 2013) – A prospectus issued today describes for potential investors three series of revenue bonds and two series of bond anticipation notes to complete the financing of a new Ohio River crossing for heavily traveled Interstate 65 between Louisville and Southern Indiana.
The Kentucky Public Transportation Infrastructure Authority (KPTIA), the Commonwealth’s financing and oversight agency for major transportation investments, is issuing approximately $295.4 million in bonds and approximately $452 million in bond anticipation notes, to be secured by toll revenue.
“This is another milestone in this long-awaited project to improve cross-river mobility between Louisville and Southern Indiana,” said Kentucky Transportation Secretary Mike Hancock, who also is KPTIA chairman.
The Series 2013 toll revenue bonds and bond anticipation notes are to complete financing of the $1.3 billion Downtown Crossing – one half of the $2.6 billion Louisville-Southern Indiana Ohio River Bridges Project, which Kentucky and Indiana are building jointly.
The Downtown Crossing includes a new I-65 bridge for northbound traffic, a refurbished John F. Kennedy Memorial Bridge for southbound traffic, construction of new bridge approaches in Jeffersonville, Ind., and reconstruction of the Kennedy Interchange, where I-65, I-64 and I-71 merge in downtown Louisville.
The other half of the project is the East End Crossing, a new bridge and highway connections that will complete a loop around the greater Louisville area. It is being built and financed as a Public-Private Partnership involving Indiana Department of Transportation, Indiana Finance Authority and the contracting team, WVB East End Partners.
Construction is well underway on both crossings. Governor Steve Beshear and Federal Highway Administrator Victor Mendez, along with Secretary Hancock, broke ground for the Downtown Crossing on June 18.
Both crossings will be tolled facilities, featuring all-electronic or “open road” tolling that does not require drivers to stop at a toll plaza. The two states will divide the toll revenue evenly. To this point, Kentucky has financed the Downtown Crossing with federal highway funds.
In the weeks ahead, Citigroup, underwriter of the bonds, will market them to potential investors. The Downtown Crossing also has been approved for a low-interest loan from the Federal Highway Administration under the Transportation Infrastructure Finance and Innovation Act (TIFIA). Under the finance plan for the Downtown Crossing, proceeds of the TIFIA loan will be drawn in 2017 for refinancing by retiring the bond anticipation notes.