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3/18/2021
The Regional Transportation District-Denver (RTD) last week successfully closed a refunding bond transaction to refund the FasTracks Project 2012A bonds and Transportation Infrastructure Finance and Innovation Act (TIFIA) loan from the U.S. Department of Transportation.
The transaction generates interest savings and restructures the associated future debt service to achieve the most beneficial financial results for annual cash flows, RTD officials said in a press release. The refunding exceeded the agency's expectations, they added.
The refunding will result in interest savings for FasTracks of $127.5 million over 24 years, with 99% or $126.1 million of those savings realized between 2021 and 2026. The savings are the equivalent of a 15% net present value (NPV) savings in interest cost, which far exceeds the RTD board policy requiring at least a 3% NPV savings in order to authorize a debt refunding. The average interest rate on the new refunding bonds is 2.11%.