The Alameda Corridor Transportation Authority (ACTA) achieved a significant milestone by finalizing the sale of over $216 million in revenue refunding bonds. This financial move is aimed at refinancing and restructuring ACTA’s debt, strategically reshaping its debt service profile to prevent projected shortfalls and align with anticipated revenue growth. Notably, the Ports of Long Beach and Los Angeles are providing crucial backstop support for any shortfalls.
Breaking down the bond issuance on January 23rd, ACTA priced a total of $216 million, comprising $41.2 million Tax-Exempt Senior Lien Revenue Refunding Bonds, $10.9 million Taxable Senior Lien Revenue Refunding Bonds, $29.7 million Tax-Exempt Subordinate Lien Revenue Refunding Bonds, and $134.6 million Taxable Subordinate Lien Revenue Refunding Bonds. Assured Guaranty Municipal Corp. provides insurance for these bonds.
The bond proceeds, combined with ACTA’s cash and debt service reserve fund releases, were utilized to fund the defeasance and acquisition of specific tendered bonds. This strategic debt restructuring resulted in a remarkable reduction of approximately $280 million in aggregate debt service for fiscal years 2026-2033.
Key players in the bond offering included co-senior managers J.P. Morgan Securities LLC and RBC Capital Markets, LLC, along with co-managers Goldman Sachs & Co. LLC, Ramirez & Co., Inc., and Siebert Williams Shank & Co., LLC. Co-financial advisors PFM Financial Advisors LLC and Frasca & Associates LLC played a vital role, with legal support from O’Melveny & Myers LLP (bond counsel), Sheppard, Mullin, Richter & Hampton LLP (disclosure counsel), and Nixon Peabody LLP (tax counsel).
For a detailed overview of the transaction, interested parties can refer to Alameda Corridor Transportation Authority | MuniOS.
ACTA is a joint exercise of powers authority created by the City of Long Beach and the City of Los Angeles to acquire, construct, finance and operate the consolidated multi-track high speed rail system that links the Ports to the transcontinental rail routes near downtown Los Angeles via the Corridor. The Corridor became operational in 2002, consolidating over 90 miles of pre-existing rail lines onto an integrated 20-mile-long multi-track system.
The Corridor provides faster rail transport speeds, eliminated 200 at-grade crossings, reducing emissions caused by delays and enhances the overall rail capacity, reducing the need for trucking cargo. ACTA’s mission is to facilitate the safe and efficient movement of goods in partnership with Union Pacific Railroad Company, BNSF Railway Company and the Ports. Revenue from Union Pacific and BNSF pay, among other things, debt service on ACTA’s revenue bonds.