The Illinois Tollway sold $500 million in senior revenue bonds — the first of two anticipated new-money bond issues expected to total an estimated $900 million in 2014. The Tollway bonds were priced to produce reoffering yields ranging from 2.94 percent to 3.89 percent and yields to maturity ranging from 3.22 percent to 4.41 percent. The bonds were issued as fixed-rate revenue bonds with serial maturities from January 1, 2026 through January 1, 2039.
“There continues to be strong demand for Tollway revenue bonds and we are pleased with the pricing we achieved in today’s market,” said Illinois Tollway Executive Director Kristi Lafleur. “We view this sale as a sign of confidence from investors in the Tollway’s financial stability.”
“Today’s bond offering was well-received and the attractive rates we were able to secure will help keep financing costs down, making our dollars go further as we move ahead with our Move Illinois capital program,” Illinois Tollway Board Chair Paula Wolff said.
Proceeds from the Series 2014B revenue bonds will partially fund the Illinois Tollway’s 15-year, $12 billion capital program, Move Illinois: The Illinois Tollway Driving the Future, which will relieve congestion, improve mobility, create jobs, reduce pollution and link economies across the Midwest region.
Of the $12 billion needed to finance the Tollway’s Move Illinois Program, a portion is expected to be financed by $5 billion of revenue bonds and the remainder is expected to be financed by pay-as-you-go revenues. In addition to the $900 million expected to be issued in 2014, the Tollway’s current financing plan calls for a total of $1.7 billion to be issued in 2015 and 2016.
The Series 2014B revenue bonds have a final maturity in 2039 and are callable at par beginning on January 1, 2024.
Fitch Ratings, Moody’s Investors Service and Standard & Poor’s Corp. assigned ratings of ’AA-’, ’Aa3’, and ’AA-’, respectively, to the Series 2014B senior revenue bonds and affirmed the same ratings on the Tollway’s approximately $4.2 billion outstanding senior revenue bonds. The Rating Outlook from all three rating agencies remains stable.