NC Turnpike Authority Saves Millions by Refinancing Triangle Expressway Bonds

Triangle Expressway continues to perform better than projected

RALEIGH – The North Carolina Turnpike Authority took advantage of favorable market conditions to refinance a portion of the Triangle Expressway’s outstanding bonds. This transaction resulted in more than $10.9 million in present value savings.

“This is the third refinancing of outstanding bonds for the Triangle Expressway, which will result in interest savings of approximately $103 million for the remaining life of the project,” said Turnpike Authority Executive Director Beau Memory.  “The Turnpike Authority will continue to look for innovative ways to deliver transportation infrastructure to North Carolina.”

As part of the financial refinancing, both Moody’s and Standard & Poor’s upgraded all outstanding NCTA appropriation debt for both Triangle Expressway and Monroe Expressway to ‘Aa1’ and ‘AA+’.

Since the Triangle Expressway opened in 2011, its revenues are 29 percent above projections.

If the project continues to perform as well as previous years, these savings could result in:

• Reducing the state’s contributions for Complete 540;
• Giving the N.C. Turnpike Authority Board toll rate flexibility in the future; or
• Paying off the project debt more quickly, therefore taking tolls off the road earlier.

Revenue raised through the tolling process is used to help pay off the bonds sold to fund the $1 billion highway, and for overall maintenance including road repairs, signs, mowing and winter weather preparation and response.