Chicago Skyway Toll-Road
Concession Mulls US Bond Issue
Tuesday November 16, 2004
MADRID (Dow Jones)--A consortium led by Spanish public works
company Cintra SA (CIN.MC) that won
the 99-year concession to run the
Chicago Skyway toll road is considering two bond issues in
bond issues - with maturity of 40 to 45 years - will be used to
refinance part of the debt used for the project.
Depending on market conditions, a first bond issue could be
launched some time next year, Jose Maria Lopez de Fuentes,
Cintra's U.S. manager, Tuesday told
reporters after a company presentation on the
Chicago Skyway project.
winning consortium is made up of Cintra,
with a 55% interest, and Australia's
Macquarie Infrastructure Group (MIG.AU) with a 45% stake.
Skyway project requires an
investment of $1.82 billion. Cintra
will pay $500.5 million, while
Macquarie will disburse $409.5 million in January.
rest is financed by a $1.190 billion syndicated credit from
Banco Santander Central Hispano (STD, Calyon, Banco Bilbao
Vizcaya Argentaria SA (BBV) and Germany's Depfa Bank (DEP.XE).
credit will have three tranches: the first for $1.02 billion,
the second for $90 million and the third for $80 million.
potential bonds already have investment grade as the preliminary
rating by S&P and Moody's.
During the Cintra presentation, the
company's chief executive, Juan Bejar, also said he expects
traffic on the Chicago Skyway to
grow by at least an annual rate of between 4% and 8%.
2003, the Chicago Skyway saw nearly
48,000 vehicles a day, which translated into toll revenue of
$39.7 million. That compares with just over 51,200 vehicles and
a toll revenue of $43.9 million in 2001.
Traffic levels seen in 2001 won't be recovered until 2007-2008,
Inaugurated in 1959, the Chicago
highway connects the Dan Ryan Express Way, south of Chicago,
with the Indiana Toll Road, giving
access to Indiana, Michigan and the north-western states.
in the U.S., Cintra has made the
shortlist for a $1.07 billion project in the U.S. to design,
develop, build, finance and operate a 44-kilometer toll-road
between Dallas and Fort Worth in Texas.
Cintra is also bidding on the Trans
Texas corridor, an infrastructure project worth $150 billion. In
Europe, the company is pursuing seven toll-road projects in
Portugal, Greece, Italy, Ireland and Finland.