The Commonwealth Transportation Board sold $492.7 million of Transportation Capital Projects Revenue Bonds to advance transportation projects managed by the Virginia Department of Transportation and the Virginia Department of Rail and Public Transportation.
The bonds were sold through competitive bidding. Seven underwriters submitted bids on the bonds. Goldman Sachs and Co. had the winning bid with a true interest cost of 3.247 percent. The bonds were rated AA+ by Fitch and Standard and Poor's, and Aa1 by Moody's.
The bond funding will be combined with other state and federal dollars to keep highway, rail and transit projects moving forward when the Commonwealth updates its Fiscal Years 2011-2016 Six-Year Improvement Program this spring.
The bond sale, recently approved by Governor Bob McDonnell, is the first issuance of the Transportation Capital Projects Revenue Bonds that were authorized by the Virginia General Assembly in 2007.
"Although our financial challenges and transportation necessities continue, this is a tangible example of how the Commonwealth is making positive strides by maximizing funding options for our roads, bridges, rails and public transportation," McDonnell said.
"Issuing these bonds will permit the completion of projects under way and will allow Virginia to start new project phases in accordance with our Six-Year Transportation Improvement Program," said Secretary of Transportation Sean Connaughton. "Virginia's transportation system needs more funding to address the backlog of maintenance and construction on our transportation system. But, taxpayers must to be confident that we are using all available financing tools before we ask them to make additional investments in highways and rails. This bond issue is a step in restoring confidence in the integrity of Virginia's transportation finance program."