Proposal for SH 121 Toll Project. Monday, May 7, 2007

Transcription

1 Proposal for SH 121 Toll Project Monday, May 7, 2007

2 Financial Proposal $2.5 Billion Upfront Payment $833 Million (NPV) Guaranteed Annual Payments over 49 Years $1.3 Billion (NPV) Expected Revenue Reinvested in regional roads $4.633 Billion Total Regional Benefits

3 Upfront Payment Comparison NTTA Proposal $2.5 Billion Private Sector $2.1 Billion Proposal $400 Million

4 Annual Payment Comparison NTTA Proposal $833 Million (NPV) Private Sector $700 Million (NPV) Proposal $133 Million (NPV)

5 Net Revenues NTTA Proposal $1.3 Billion (NPV) Stays in the Region Private Sector Proposal $ Unknown Goes to Shareholders $1.3 Billion (NPV)

6 Total Value to Region Comparison Concession Payment. Guaranteed Revenue Sharing. Variable Revenue Sharing. Private Sector NTTA (NPV) (NPV) $2.1 Billion $2.5 Billion $700 Million $833 Million Unknown Unknown Construction. $560 Million $698 Million O&M $1.7 Billion $560 Million Reserve Maintenance $400 Million Rebuild $343 Million Cash Flow to NTTA $1.361 Billion Total $5.06 Billion $6.695 Billion

7 Making the System Stronger Maintain reasonable tolls SH 121 enhances our financial capacity Provides revenue streams for future regional projects

8 Making Regional Five in Five Projects Stronger Chisolm Trail/SH 121 Tarrant and Johnson Counties SH 170 Tarrant/Parker Counties SH 360 Dallas/Tarrant/Johnson Counties PGBT The East Branch Dallas County Trinity Parkway Dallas County

9 Bringing Benefits to North Texas $4.6 billion remains in North Texas Improves mobility Creates jobs Spurs economic development Relieves congestion and offers safe travel

10 NTTA The North Texas Partner Proven Leadership 50 years building and operating customer-centric toll projects Local Control Trusted North Texas public agency Oversight by locally accountable board Schedule Project delivered ahead of TxDOT requirements

11 Customer Benefits LEADER in INNOVATION Intelligent Transportation System Interoperability Award Winning Customer Service Center 2 million annual customer contacts 1.2 million TollTags COMMUNITY OUTREACH Community Events Interactive Web site Monthly Communications Business and city partners Customer-centric for 50 Years

12 All North Texans Benefit

13 SH 121 Project Development

14 SH 121 Corridor SH Collin, Dallas and Denton Counties

15 SH 121 Financial Overview

16 Financial Strengths System Credit Quality Lender Commitments Rating Indications

17 Strong System Credit A1/A+ Credit Rating Strong cash flows Experienced management History of on-time, on-budget delivery History of completed construction agreements with TxDOT History of reasonable toll rate increases, less than CPI History of successful bond sales

18 Lenders Commitments Bank Commitment $3.5 billion for financial close Underwriter Commitments $3.5 billion bond anticipation note sale Commercial paper liquidity provider $75 million escrow upon TxDOT s acceptance of NTTA s Proposal

19 A Conservative Proposal Toll growth rates lower than CPI Revised demographics Construction cost contingencies All senior lien debt, fixed rate

20 Independent Verification Simultaneous analysis Different models Comparable results Over 30 bankers and credit analysts Financial Advisor letter Legal opinions Rating agency reviews

21 Finance Plan Goals Core Projects DNT System with LLTB and DNT Phase 3 PGBT Eastern Extension Southwest Parkway (North) Payments to Region 75% upfront 25% over time Regional revenue sharing Adopt TxDOT bands Consistent with CDA RFP where applicable

22 Finance Plan Timeline 30 Days 60 Days 120 Days Proposal Submission TxDOT Acceptance Bank Commitment Escrow Financial Close BANS Commercial Paper Private Issuance to TxDOT Long Term Bonds

23 Results are Healthy Project coverage from 1.29x (min) 1.93x (avg) System coverage from 1.50x (min) 2.99x (avg) Credit indications A Category Remaining debt capacity $3 to $4 billion Stress tests, robust cash flows

24 Senior Debt Service Coverage SH 121 4,000 3,500 3,000 2,500 2,000 1,500 1, Year SH 121 Senior Net Debt Service Net Revenues $ m illio n s

25 Senior Debt Service Coverage System without SH 121 4,000 3,500 3,000 2,500 2,000 1,500 1, Year System w/o SH 121 Senior Net Debt Service Net Revenues 1.35x Net Debt Service $ m illions

26 Senior Debt Service Coverage System with SH 121 4,000 3,500 3,000 2,500 2,000 1,500 1, System w/o SH 121 Senior Net Debt Service SH 121 Senior Net Debt Service Net Revenues 1.35x Net Debt Service Year $ millions

27 Economic Benefits MORE money upfront MORE money guaranteed over time HIGHER credit quality of guarantee MORE money going into to the DNT System and back into North Texas mobility

28 Financial Comparison Review

29 Financial Proposal $2.5 Billion Upfront Payment $833 Million (NPV) Guaranteed Annual Payments over 49 Years $1.3 Billion (NPV) Expected Revenue Reinvested in regional roads $4.633 Billion Total Regional Benefits