Alameda Transportation Corridor Bonds Hit Slick

 

Recently the Alameda Corridor Transportation Authority requested The Ports of Long Beach and Los Angeles make a Shortfall Advance payment of $2,950,000 each in order to support debt service due on October 1, 2011. The Authority also used $24,295,000 of excess 1999A Construction Fund bond proceeds to call on October 1, 2011 the 1999A bonds maturing on October 1, 2012 and 2013. The bond call and subsequent redeuction in debt service provide financial relief while the RRIF financing transaction is being completed. The Alameda Corridor Transportation authority Project commenced operations and began collecting revenues for intermodal containers and rail cars using the Corridor in April 2002. The Project consisted of a 20-mile long, multiple-track rail system designed to link the rail yard and tracks at the Port of Los Angeles, California and the Port of Long Beach, California with the central rail yards near downtown Los Angeles. The Authority is a joint exercise of powers authority between the Cities of Los Angeles and Long Beach, California, created primarily for the purpose of acquiring, constructing, financing and operating the Project. 

 

Critical Credit Factors:

The City of Los Angeles began development of the Project in 1989.

 

The Debt Service Reserve Requirement for the Series 1999C Bonds at the time of their delivery was $49,745,339.57, and the Debt Service Reserve Requirement for the Series 1999D Bonds at the time of their delivery was $14,563,500.00.

 

The Bond Insurer was the principal operating subsidiary of MBIA Inc., a New York Stock Exchange listed company.

 

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