The restructure of SH 130 Concession Company’s senior debt facilities was awarded Restructure of the Year in North America, with judges simply saying it was an achievement.

Judges were impressed with the success of the deal as historically toll roads have been challenging assets.

The transaction saw the company restructure its existing senior credit facilities and the pay-off of the same as well as the pay-off of existing PIK credit facilities of an intermediate holding company.

The company operates segments 5 and 6 of Texas State Highway 130, a four-lane toll road located between Austin and San Antonio, Texas, pursuant to a Facility Concession Agreement entered into in 2007 between the Company and the Texas Department of Transportation.

The multi-source $825 million refinancing comprised:

• a Credit Agreement with commercial lenders, with a $300 million term loan facility and $50 million working capital facility
• a Note Purchase Agreement under which the Company issued $475 million of senior secured notes
  • $275 million of senior secured notes due 2038
  • $200 million of senior secured notes due 2053

The Build America Bureau is a minority shareholder in this project.

The SH130 project is the first privately developed and operated open toll road facility in Texas, a partnership between TxDOT and the SH 130 Concession Company.

The lenders in connection with the $350 million credit facility and the note purchasers of $475 million of senior secured notes were:

• ING Capital
• JP Morgan
• Royal Bank of Canada

Judges were impressed that the transaction increased its debt size, improved its rating, and kept interest rate and hedging costs to a minimum.

The SH 130 highway was built to alleviate traffic congestion on Interstate 35 (I-35), one of the busiest and most congested highways in Texas. It provides an alternative route for travellers and commercial traffic moving through the Austin-San Antonio corridor. SH 130 serves as a vital transportation link for the movement of goods and services between the major metropolitan areas of Austin and San Antonio. It plays a crucial role in the distribution and logistics networks of businesses in the region.

Advisers to SH 130 Concession Company:

• Goldman Sachs – financial
• White & Case – legal

Advisers to the lenders:

• Winston & Strawn – legal