OCTA recently refinanced the 91 Express Lanes bonds to save money and allow for even more efficient investments in transportation improvements that benefit all who travel through the SR-91 corridor. OCTA owns and operates the 91 Express Lanes in Orange County.
By refinancing, OCTA reduced the principal on the 91 Express Lanes bonds from $71 million to $48 million. This was done at an all-in true interest rate of 2.8%.
At the same time, the final maturity date of the bonds remains at 2030. The refinancing yields a net present-value savings of $5.5 million – or 8.6%.
“I applaud the OCTA team for finding ways to maximize efficiencies and save money,” said OCTA Chairman Gene Hernandez, also the mayor of Yorba Linda. “OCTA’s 91 Express Lanes continues to be a prime example of innovation in the transportation industry and offers a consistent time-saving option that benefits everybody who travels between Orange and Riverside counties.”
Contributing to strong investor demand, the 91 Express Lanes bonds were recently rated in the AA- category or the equivalent by all three major rating agencies.