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TRANSACTIONS NEWSLETTER ONLINE

July 2001
Bay Area Toll Authority Bonds Boost Bridge Work

Agency Successfully Completes Initial Debt Offering
Acting as the Bay Area Toll Authority (BATA), MTC has just issued $400 million in bonds to finance major capital improvements to Bay Area toll bridges, including a replacement for the aging westbound span of the Carquinez Bridge, a second span for the Benicia-Martinez Bridge and widening of the San Mateo-Hayward Bridge. BATA's first-ever debt offering consisted of $300 million in variable-rate bonds and $100 million in fixed-rate bonds. The fixed-rate bonds are sold in industry-standard denominations of $5,000, range in maturity from five to 17 years and carry an average annual interest rate of 4.86 percent. The variable-rate bonds mature in 2036 and are sold in denominations of $100,000, making them of interest primarily to large institutional investors. Both types of bonds are "double-tax-free," meaning interest from the bonds is exempt from federal and, in California, state income tax.

"The sale of these bonds means BATA can continue to move full speed ahead to deliver the Regional Measure 1 program of bridge projects," said MTC Executive Director Steve Heminger, referring to the ballot measure that authorized a standard base auto toll of $1 to fund a $1.5 billion overhaul and upgrade of the Bay Area's state-owned toll bridges and their approaches.

Benicia-Martinez Bridge Above: A new span -- for northbound traffic -- will soon be constructed at the Benicia-Martinez Bridge site (the scalloped span at the left carries trains). Photo: Barrie Rokeach

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