/ Financial / NCDOT Reports Savings from Toll Road Refinancing

NCDOT Reports Savings from Toll Road Refinancing

Parul Dubey on May 23, 2018 - in Financial, News

​The North Carolina Turnpike Authority, one of five divisions of the North Carolina Department of Transportation, successfully refinanced a portion of the Triangle Expressway toll road’s outstanding bonds back on May 11, resulting in more than $10.9 million in present value savings.

“This is the third refinancing of outstanding bonds for the Triangle Expressway, which will result in interest savings of approximately $103 million for the remaining life of the project,” said NCTA Executive Director Beau Memory in a statement

As part of the financial refinancing, Memory noted that both Moody’s and Standard & Poor’s upgraded all outstanding NCTA appropriation debt for both Triangle Expressway and Monroe Expressway to “Aa1” and “AA+.”

Since the Triangle Expressway opened in stages between 2011 and 2013, its revenues are 29 percent above projections, the agency said, and if the project continues to perform as well as previous years, savings could go to support one three options:

  • Reducing the state’s contributions for the Complete 540 series of highway projects;
  • Giving the NCTA Board toll rate flexibility in the future; or
  • Paying off the project debt more quickly, therefore taking tolls off the road earlier.

NCTA said revenue raised through the tolling process is used to help pay off the bonds sold to fund the $1 billion Triangle Expressway, along with funding overall maintenance for 18.8-mile long highway, which includes road repairs, signs, mowing and winter weather preparation and response.

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