Orrick, Herrington & Sutcliffe LLP has advised 95 Express Lanes LLC, a consortium consisting of Transurban Drive and Fluor Enterprises Inc., on its concession agreement with the Virginia Department of Transportation (VDOT) to build 29 miles of HOV/HOT lanes on I-95. The project — which is expected to be completed by late 2014 — will support nearly 8,000 construction jobs and create $2 billion in economic activity. The additional lanes will help ease congestion in one of the most crowded transportation corridors in the country, and help move people more efficiently around Virginia’s biggest employment hub and several military sites.
Under the agreement, 95 Express will finance, build, operate and maintain the facility for a 76-year concession period. The total cost of the project, valued at $935 million, has been initially financed by a $241 million senior private activity bond issuance, $400 million in equity committed by Transurban and Fluor and a $71 million public contribution by VDOT (with another $223 million committed by VDOT). In addition, a $300 million federal TIFIA loan is expected to be obtained for the project on a subordinated basis before the end of the year, which will reduce the equity and VDOT commitments in a corresponding amount at that time.
“We are pleased to have advised long-time clients Transurban and Fluor on the successful closing of this important project for the Commonwealth of Virginia,” said Dan Mathews, co-chair of Orrick's Energy and Infrastructure Group.
The Orrick team was led by New York energy and infrastructure partners Dan Mathews and Young Lee and included Washington, D.C., energy and infrastructure partner Keith Kriebel, New York tax partner Richard Chirls, San Francisco tax partner Greg Riddle, New York restructuring partner Lorraine McGowen, Seattle public finance of counsel Susan Barry, New York energy and infrastructure associates Victoria Boyne, Sam Headon and Susan Long, Seattle public finance associate Angela Trout, Washington, D.C., energy and infrastructure associates Irma Foley and Leo Owens and New York banking and debt capital markets associate Alastair Macdonald.