The Santa Rosa Bay Bridge Authority, Fla., missed its third bond payment on July 1 because toll revenues were insufficient to pay debt service, according to a market notice filed by Bank of New York Mellon, the trustee.
The authority, which issued $95 million of revenue bonds in 1996 to build the 3.5-mile Garcon Point toll bridge in northwest Florida, had drawn on reserves for many years to supplement debt service payments because traffic levels never met projections.
The first payment default occurred a year ago when the reserve was nearly depleted and gross revenues were insufficient.
The second payment default occurred in January this year.
While a partial payment was made in March from remaining reserves, the trustee said on June 29 that it is anticipated gross revenues will be insufficient to pay debt service for the “foreseeable future.”
BNY Mellon has hired FTI Consulting Inc. to provide financial advisory and consulting services “to explore potential alternatives related to the bonds,” the trustee’s notice said.
No other details on the bondswere provided.
The authority’s board is scheduled to hold its next meeting on Sept. 12.
The toll revenue bonds were uninsured when they were originally issued, though some maturities were insured in the secondary market.
No restructuring plans have been suggested as yet.