Indiana Toll Road Refinancing Test

With toll revenues generated by the Indiana Toll Road (ITR) insufficient to support the refinancing of some US$4 billion of debt coming due in June 2015, Ferrovial and its concession subsidiary Cintra are involved in complex talks with the steering committee of a bank syndicate to restructure the repayment of the highway’s debt under Chapter 11 protection.

ITR, a Cintra-Macquarie 75-year concession, was hit by the 2008 financial crisis and the harsh recession in its wake. As a result, traffic forecasts supporting the 157-mile-long highway’s ability to refinance the nine-year debt, including stepped up interest rates, collapsed. All of the equity contributed by co-sponsors Cintra and Macquarie, $380 million each, has been spent.


About Bill Reinhardt

Editor of Public Works Financing newsletter
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