O’Melveny Advises Alameda Corridor Transportation Authority on US$216 Million Bond Refinancing
March 7, 2024
FOR IMMEDIATE RELEASE
LOS ANGELES—March 7, 2024—O’Melveny advised the Alameda Corridor Transportation Authority (ACTA) on the sale of US$216 million in revenue refunding bonds to refinance and restructure ACTA’s debt.
The transaction was announced on February 7.
ACTA is a joint exercise of powers authority created by the California cities of Long Beach and Los Angeles to acquire, construct, finance and operate the consolidated multi-track high speed rail system that links those cities’ ports to the transcontinental rail routes near downtown Los Angeles via the Corridor, an integrated 20-mile-long multi-track system.
The O’Melveny team advising ACTA was led by Project Development and Real Estate partner M. Elizabeth Dubeck, counsel Kathryn E. Turner, and associate Daniel W. Leal, with critical support from of counsel David J. Johnson, Jr.
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Contact:
Brandon Jacobsen
O’Melveny & Myers LLP
+1 213 430 8024
bjacobsen@omm.com
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ACTA issued the following announcement:
Alameda Corridor Transportation Authority Announces Sale of Approximately $216.2 Million Revenue Refunding Bonds
February 07, 2024 01:04 AM Eastern Standard Time
LONG BEACH, Calif.--(BUSINESS WIRE)--On February 6th, the Alameda Corridor Transportation Authority (ACTA) closed over $216 million in revenue refunding bonds to refinance and restructure ACTA’s debt. The sale of these bonds will allow ACTA to reshape its debt service profile to avoid certain projected debt service shortfalls and match anticipated revenue growth. Shortfalls are backstopped, in part, by the Ports of Long Beach and Los Angeles (the Ports).
On January 23rd, the Alameda Corridor Transportation Authority priced $41.2 million aggregate principal amount of its Tax-Exempt Senior Lien Revenue Refunding Bonds, $10.9 million aggregate principal amount of its Taxable Senior Lien Revenue Refunding Bonds, $29.7 million aggregate principal amount of its Tax-Exempt Subordinate Lien Revenue Refunding Bonds and $134.6 million aggregate principal amount of its Taxable Subordinate Lien Revenue Refunding Bonds, for a total of approximately $216 million. The bonds are insured by Assured Guaranty Municipal Corp.
Bond proceeds along with ACTA cash and debt service reserve fund releases were used to fund the defeasance and purchase of certain tendered bonds. The tender and restructuring of ACTA’s debt reduced aggregate debt service in fiscal years 2026-2033 by approximately $280 million.
J.P. Morgan Securities LLC and RBC Capital Markets, LLC served as co-senior managers on the offering, with Goldman Sachs & Co. LLC, Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC serving as co-managers. PFM Financial Advisors LLC and Frasca & Associates LLC acted as the co-financial advisors, O’Melveny & Myers LLP served as bond counsel, Sheppard, Mullin, Richter & Hampton LLP served as disclosure counsel and Nixon Peabody LLP served as tax counsel.
For a comprehensive description of the transaction see Alameda Corridor Transportation Authority | MuniOS.
ACTA is a joint exercise of powers authority created by the City of Long Beach and the City of Los Angeles to acquire, construct, finance and operate the consolidated multi-track high speed rail system that links the Ports to the transcontinental rail routes near downtown Los Angeles via the Corridor. The Corridor became operational in 2002, consolidating over 90 miles of pre-existing rail lines onto an integrated 20-mile-long multi-track system.
The Corridor provides faster rail transport speeds, eliminated 200 at-grade crossings, reducing emissions caused by delays and enhances the overall rail capacity, reducing the need for trucking cargo. ACTA’s mission is to facilitate the safe and efficient movement of goods in partnership with Union Pacific Railroad Company, BNSF Railway Company and the Ports. Revenue from Union Pacific and BNSF pay, among other things, debt service on ACTA’s revenue bonds.
Contacts
Dennis Wolcott
(213) 200-1563
media@acta.org