As part of the Transportation Corridor Agencies’ (TCA) Strategic Plan, the San Joaquin Hills Transportation Corridor Agency (SJHTCA) has executed an early paydown of $200 million in junior lien bond debt. The Boards approved “Early Bond Paydown Program” is a multi-year plan which includes several bond paydown opportunities through 2030 for both the SJHTCA and the Foothill/Eastern Transportation Corridor Agency (F/ETCA).
The early paydown of bond principal – bonds that were issued in 2014 and had maturity dates of 2044 and 2049 – saves the Agency approximately $203 million in interest payments. The SJHTCA paid off the bonds with cash reserves when the bonds were callable earlier this month.
“The early paydown of bond debt affirms TCA’s commitment to fiscal responsibility as part of the Boards’ approved strategic plan to reduce debt and implement strategies for cost savings,” said SJHTCA Board Chair and Santa Ana City Councilmember David Penaloza. “When the bonds are callable, we take action on early paydown opportunities, while also protecting the Agencies’ ability to fund operations and capital projects. These prudent policies have produced long-term cost savings over time that have resulted in solid financial management which is core to the Agencies’ past and future success.”
By 2030, the Agencies plan to pay down another $720 million of bonds early, saving an additional $603 million in interest. This future debt reduction, when combined with the current reductions of $1.79 billion, will collectively reduce debt by $3.1 billion.
The SJHTCA and F/ETCA are two joint powers authorities created to plan, finance, construct and operate the 420 lane miles that comprise the 73, 133, 241 and 261 Toll Roads.
The Toll Roads provide a choice for drivers and the tolls collected are used to repay the debt incurred to construct the system and fund on-going operations and improvements.
The Toll Roads system, which represents 20% of Orange County’s highways, is the largest toll road network in California.
The Transportation Corridor Agencies (TCA) are two joint powers authorities formed by the California Legislature in 1986 to plan, finance, construct and operate Orange County’s public toll road system comprised of the 73, 133, 241 and 261 Toll Roads.
