C-470 EXPRESS LANES PROJECT REACHES FINANCIAL CLOSE
DENVER - The High Performance Transportation Enterprise (HPTE) and Colorado Department of Transportation (CDOT) achieved two major milestones on the C-470 expansion project, which had its financial close today. HPTE successfully closed on $161.7 million in revenue bonds for the project, the first bonds ever issued directly by HPTE. Also, last week HPTE closed on a $106.9 million federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan supporting the project. C-470, the southwestern portion of the Denver metro area’s beltway, is one of the most congested corridors in the nation. The expansion project will add new Express Lanes and improve general purposes lanes between I-25 and Wadsworth. Combined, the issuance of the bonds and receipt of the federal loan provides more than two-thirds of the funding needed for this important project.
“We are excited to have sold the bonds at extremely favorable rates and terms, which shows the strength of this project,” said HPTE Director David Spector. “The demand far exceeded the supply, lowering true interest costs and resulting in more than $30 million in savings for the state of Colorado over the life of the bonds. HPTE was created to finance projects like this, and we’re proud to help deliver projects like this that otherwise would not have enough funding.”
The $106.9 million TIFIA loan, provided by the U.S. Department of Transportation’s Build America Bureau, also provides attractive interest rates and repayment terms for the project, including: HPTE has 35 years after the project is open to repay the loan; interest payments do not begin until five years after the project is open; the loan is subordinate to the bonds; and HPTE can prepay the loan at any time without a penalty.
“Protecting TIFIA funding for the C-470 project along with promoting other infrastructure investments across Colorado has been a top priority for me in the Senate, and this is another exciting step forward in getting shovels in the ground in order to reduce traffic congestion along the Front Range," said Senator Cory Gardner. "I appreciated the opportunity to work closely with HPTE, CDOT and their Executive Director, Shailen Bhatt, to move this effort forward and look forward to seeing the immediate positive impacts for our region when this much needed project is completed."
“The Build America Bureau is very pleased to partner with HPTE to help finance the C-470 project,” said Marty Klepper, Executive Director of the Bureau.
Learn more at expresslanes.codot.gov.
About Express Lanes: Express Lanes increase roadway capacity and help to manage congestion on the highways. The use of toll pricing during peak travel times reduces delays, manages congestion and maintains reliable travel times. Express Lanes are currently open on I-25 between downtown Denver and 120th Avenue, US 36 between Denver and Boulder, and on I-70 between Idaho Springs and Empire.
About the High Performance Transportation Enterprise (HPTE): The HPTE operates as a government-owned, independent business within CDOT. It searches out innovative ways to finance projects to help Colorado fulfill its commitment to increase travel choices through options that include Express Lanes, transit, biking, walking and carpooling. For more information, visit www.coloradohpte.com.
About CDOT: www.codot.gov
