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OCTA bonds rated AA+, sale set Feb. 13, 2019

Measure M2 Sales Tax Revenue bonds set to be issued for sale on Feb. 13 have received AA+ ratings from Fitch Ratings and Standard and Poor’s, reflecting the strong financial stewardship of the Orange County Transportation Authority.

The 2019 M2 Sales Tax Revenue Bonds will generate $400 million in net proceeds as part of the board-approved finance plan for the $1.9 billion I-405 Improvement Project, which is being funded with a combination of federal, state and local funds, in addition to a $629 million TIFIA loan.

“These ratings speak to the strong financial position of OCTA and reflect the long and successful history of delivering on our promises to be excellent stewards of taxpayer dollars,” said OCTA Chairman Tim Shaw, also a La Habra Councilman.

The OCTA board unanimously approved the issuance and sale of the municipal bonds at its meeting on Jan. 28. In addition, the board approved the refinancing of $43.5 million of the outstanding 2010 Series A Bonds, which is expected to reduce total debt service payments by more than $1 million.

The 16-mile I-405 project, which broke ground in early 2018, will add general-purpose and express lanes along one of the most heavily traveled stretches of freeway in the nation near the border of Orange and Los Angeles counties.

In advance of the bond sale, OCTA launched a new, corporate-style investor-relations web portal with more than 2,000 pages of data and documents, providing a single location for investors to access OCTA credit fundamentals. The site can be viewed at www.octabonds.com.

The new site, created and hosted by BondLink, furthers OCTA’s efforts to differentiate itself from thousands of other issuers in the marketplace and supports the 2019 Board of Directors’ Initiatives of Delivering on Capital Projects and Championing Fiscal Responsibility.

This article was released by the Orange County Transportation Authority.