On Friday, April 29, the TIFIA Credit Program executed a $170 million secured loan with the Florida Department of Transportation for the Miami Intermodal Center Rental Car Facility. The project will consolidate rental car operations at the Miami International Airport, thereby reducing roadway congestion, increasing safety and improving air quality.
The TIFIA loan will be secured by customer facility charges collected by the participating rental car companies. The financing structure employs an innovative Project Life Coverage Ratio (PLCR), a more dynamic tool than traditional debt service coverage tests. With this structure, debt service payments are a function of annual project revenues, while regular PLCR calculations utilizing updated activity forecasts ensure future revenues are sufficient to repay the entire TIFIA loan balance. This "ultimate recovery" model helps manage credit risk while assuring the operations of the rental car facility.
The interest rate on the 30-year loan is 4.52 percent, the second-lowest TIFIA borrowing rate on record. The loan is part of the $1.3 billion Miami Intermodal Center, a multi-year program of airport access improvements at Miami International Airport. In June 2000, TIFIA provided a $269 million secured loan for program elements such as roadway improvements and an intermodal transit center.
During the month of April, the Federal Highway Administration awarded contracts for legal and financial advisory services to the TIFIA Credit Program. Since the beginning of the program, the TIFIA Joint Program Office (JPO) has relied on industry experts to analyze the financial aspects and to draft the legal terms of credit agreements for those projects seeking TIFIA credit assistance.
The selected financial firms are Montague DeRose and Associates, Scully Capital Services, Infrastructure Management Group, and Taylor DeJongh, Inc.
The selected legal firms are Hawkins Delafield & Wood, Nixon Peabody, Ballard Spahr Andrews & Ingersoll, Duane Morris and Katten Muchin Zavis and Rosenman.
The mailing address for the TIFIA Credit Program is:
Federal Highway Administration (HABF-50)
400 Seventh Street, S.W.
Washington, DC 20590
Please e-mail your comments or inquiries regarding this newsletter or the TIFIA program to: Duane.Callender@fhwa.dot.gov.
TIFIA Credit Program
US Dept. of Transportation