Project Partners

Grant Thornton, Jack Fawcett & Associates, Summit

Background

Archetype has been advising the U.S. Federal Highway Administration in its Transportation Infrastructure Finance and Innovation Act (“TIFIA”) Program’s Joint Program Office (“JPO”) in evaluating the creditworthiness of projects, negotiating the financial terms and conditions in the credit agreements, and providing post-closing financial services since 1999. In doing so, our team has advised DOT on over 25 projects totaling $37.5 billion with a wide range of credit structures and has performed financial and credit analyses for projects requesting a total of $12.4 billion in TIFIA assistance. These projects covered a variety of infrastructure, including ports, roads, bridges, stations, ferries, rail, HOT lanes, and truck stops, and incorporating numerous innovative financing structures and unique risk profiles. The scope of our work has included the following activities:

  • Evaluating the proposed project and the plan of finance;

  • Advising on credit strengths and weaknesses of loan requests;

  • Assisting in structuring the transactions, including recommendations of structural enhancements to address specific project risk profiles;

  • Supporting DOT in term sheet development and credit negotiations;

  • Developing financial models to support sensitivity analyses and due diligence;

  • Supporting approval process;

  • Assisting in project workouts and restructurings, including a bankruptcy, analyzed restructuring alternatives, and performed valuations on troubled projects.

Challenges & Solutions

SH-130 Segments 5&6 Restructuring Project
Archetype assisted the TIFIA JPO in the restructuring of the State Highway (SH)-130 Segments 5&6 project loan issued in 2008 in the amount of $430 million.  SH-130 is a 91-mile toll road intended to provide needed relief to congested I-35 through Central Texas. Segments 1-4 of the toll road were developed directly by the Texas Department of Transportation (“TxDOT”) as a state toll road, while the Project (consisting of Segments 5 & 6) was developed by the borrower, under a 50-year concession agreement with TxDOT.

Financial Advisor for the Dulles Metrorail Silver Line Project
Archetype reviewed three loan applications for $1.3 billion in TIFIA direct loans to finance Loudoun and Fairfax counties’ share of the $6 billion of the Dulles Metrorail Silver Line transit project. The loans which fund the commitments of Fairfax and Loudoun Counties are backed by dedicated tax revenues from tax districts, subject to annual appropriation. In addition to reviewing the appropriations process for each county, the Archetype team reviewed the legal documents that frame the actions which county administration may take with respect to tax rates within the districts and the issuance of additional bonds supported by special tax district revenues.  Archetype analyzed the underlying economics of the tax districts and the counties in which they are located to understand the stability and growth potential of the revenue source over the repayment period.