advertisement

---

In March, the Alameda Corridor Transportation Authority (ACTA) submitted an application for a Railroad Rehabilitation & Improvement Financing (RRIF) loan to the Federal Railroad Administration (FRA). The authority plans to use proceeds to refinance a portion of its outstanding debt.

The proposed refinancing would address the recession’s impact on trade through Los Angeles-area ports and a resulting decline in ACTA's usage fee and container charge revenue, ACTA officials said in a prepared statement. The authority governs the Alameda Corridor, a 20-mile freight-rail expressway that links the ports with rail yards east of downtown L.A.

However, the FRA recently informed ACTA that a credit counsel committee postponed a decision on its RRIF application pending further review of the proposed loan’s terms. The FRA plans to present proposed loan covenants and possible term adjustments to the committee early next year.

In the meantime, the authority is reviewing other alternatives for restructuring its outstanding debt through a traditional public financing mechanism or other possible options, ACTA officials said.