Transurban granted TIFIA loan for Pocahontas Parkway
26 July 2007

Transurban USA has received a US$150 million Transportation Infrastructure Finance and Innovation Act (TIFIA) loan from the US government for a project in Virginia.

Part of the loan will be used for the construction of a connecting road from Richmond International Airport to the Pocahontas Parkway toll road in Virginia [projects database].

The loan will also be used to refinance a portion of Transurban's debt on the Pocahontas Parkway and upgrade and integrate the electronic tolling system.

In June 2006, Transurban paid US$611 million to the Pocahontas Parkway Association to pay off the outstanding debt and take ownership of the road.

MLAs for the deal were:

• Depfa Bank
• HypoVereinsbank
• Banco Espirito Santo

Transurban had agreed to build the Richmond Airport Connector - subject to receiving the loan - under the Pocahontas Parkway concession agreement signed last year with the Virginia transport department (VDOT). Transurban will own and operate the two-lane 2.6km road.

From the US$150 million loan:

• US$45.2 million will go towards the capital cost of the Richmond Airport Connector
• US$95.2 will go towards refinancing the senior debt facility
• US$7 million for upgrading the electronic tolling system

Taylor-DeJongh acted as financial advisor to TIFIA and Depfa acted as financial advisor to the sponsor.