The Metropolitan Washington Airports Authority announced on Friday that it will issue up to $1.3 billion of Dulles Toll Road revenue bonds in early August.
The deal is one of the first steps toward financing a $5.2 billion project to connect the Washington Metrorail system to Dulles International Airport. The Series 2009 bonds will be secured by toll revenue from the roadways that the MWAA will control to finance the Metrorail extension.The bonds have not yet been rated and a preliminary official statement has not been released.
Bond proceeds will fund a portion of the project’s first phase — an 11-mile stretch between the West Falls Church Metrorail station and a new station at Wiehle Avenue in Reston, Va., that is expected to cost $2.6 billion and be completed by 2013. The U.S. Department of Transportation announced in March that it will provide $900 million in funding for the project. The second phase is projected to cost about $2.5 billion.
The syndicate for the bonds will be led by Morgan Stanley and Citi. The firms announced an arrangement that became effective in June for Citi to sell municipal securities to retail investors through Morgan’s financial adviser network.
Co-managers include Banc of America Securities, Barclays Capital, BB&T Capital Markets, Davenport & Co., Estrada Hinojosa & Co., Mesirow Financial Inc., Rice Financial Products Co., Siebert Brandford Shank & Co and Wachovia Bank NA.
