Fluor Announces Financial Close on Maryland Purple Line Light Rail Transit Project
IRVING, Texas—Fluor Corporation (NYSE: FLR) announced that its Purple Line Transit Partners team, comprised of Fluor, Meridiam Infrastructure Purple Line, LLC, and Star America Purple Line, LLC, reached financial close to design, build, finance, operate and maintain the Purple Line project for the Maryland Department of Transportation (MDOT) and the Maryland Transit Administration (MTA).
Fluor is participating in the entire 36-year life cycle of the $5.6 billion project, which includes a $2 billion design-build contract. The company brings robust public-private partnership (P3) experience and industry-leading ability to successfully finance and manage complex megaprojects. Fluor plans to book its share of the contract value this quarter.
The financing includes an $874.6 million Transportation Infrastructure Finance and Innovation Act (TIFIA)loan from the United States Department of Transportation and $313 million in “Green Bonds” from Private Activity Bonds underwritten by JP Morgan and RBC Capital Markets. Supported by contracts backed by the investment grade credit ratings of the Maryland Commonwealth Transportation Trust Fund and Fluor Corporation, the bonds were sold at the lowest interest rates ever achieved in the U.S. P3 market, which generated significant savings for MTA.
“Fluor and our partners have successfully achieved financial close through innovative financing and proven integrated solutions approaches that result in a long-term partnership with the state of Maryland to design, build, finance, operate and maintain this world-class project,” said Hans Dekker, president of Fluor’s infrastructure business.
Fluor is the managing partner of the design-build team, Purple Line Transit Constructors, comprised of Fluor Enterprises Inc., The Lane Construction Corporation, Traylor Bros., Inc., and includes subcontractor Atkins North America, Inc., as the lead designer. The Purple Line Transit Constructors team has begun initial design and survey work with construction slated to start later this year and passenger service scheduled for early 2022. Following the construction, Purple Line Transit Operators, a Fluor-led team comprising Fluor Enterprises, Inc., Alternate Concepts, Inc., and CAF USA, Inc., will provide 30 years of operations and maintenance services.
Located in the Washington Metropolitan Region, the project includes 21 stations along a 16-mile alignment extending from Bethesda, Md., in Montgomery County to New Carrollton, Md., in Prince George’s County. This new line will provide connections to several existing transit providers and improve mobility to major economic and job centers, as well as the University of Maryland in College Park.
“Purple Line Transit Partners is pleased to reach financial close on this important project,” said Herb Morgan, CEO, Purple Line Transit Partners. “This milestone, plus the recent Board of Works action approving the P3 contract, solidifies Maryland’s leadership in protecting and enhancing the state’s fiscal integrity by advancing a public-private partnership project that will transfer construction, operation, maintenance and performance risks to the private partners all while ensuring riders and stakeholders receive improved mobility, environmental compliance and safety. Our team is looking forward to working with Maryland communities to start construction later this year and deliver this innovative project at a fixed-price and on schedule.”
About Fluor Corporation
Fluor Corporation (NYSE: FLR) is a global engineering, procurement, fabrication, construction and maintenance company that designs, builds and maintains capital-efficient facilities for its clients on six continents. For more than a century, Fluor has served our clients by delivering innovative and integrated solutions across the globe. With headquarters in Irving, Texas, Fluor ranks 155 on the FORTUNE 500 list with revenue of $18.1 billion in 2015 and has more than 60,000 employees worldwide. For more information, please visit www.fluor.com or follow us on Twitter @FluorCorp.