Bulletin: ITR Concession Co. LLC 'BBB' Secured Note Rating Not Affected By Proposal To Increase Truck Tolls

TORONTO (S&P Global Ratings) Sept. 5, 2018--S&P Global Ratings today said that its 'BBB' ratings on the ITR Concession Co. LLC (ITR)'s $2.6 billion senior secured notes is not expected to be affected by the proposed $1 billion payment to Indiana Finance Authority (IFA) in exchange for a one-time 35% increase in truck tolls. The governor of Indiana announced that IFA and ITR will amend the concession agreement to allow one-time increase to truck tolls on 157-mile Indiana Toll Road in exchange for the $1 billion payment over three years. We expect the financial close of this transaction on Oct. 5, 2018, when the project will make it first $400 million payment and raise the toll. ITR will pay IFA

...TORONTO (S&P Global Ratings) Sept. 5, 2018--S&P Global Ratings today said that its '###' ratings on the ITR Concession Co. LLC (ITR)'s $2.6 billion senior secured notes is not expected to be affected by the proposed $1 billion payment to Indiana Finance Authority (IFA) in exchange for a one-time 35% increase in truck tolls. The governor of Indiana announced that IFA and ITR will amend the concession agreement to allow one-time increase to truck tolls on 157-mile Indiana Toll Road in exchange for the $1 billion payment over three years. We expect the financial close of this transaction on Oct. 5, 2018, when the project will make it first $400 million payment and raise the toll. ITR will pay IFA the remaining $600 million in two equal tranches on Oct. 1, 2019, and Oct. 1, 2020, as long as the increase is not suspended, prohibited, or reduced and doesn't give rise to a compensation event under the concession agreement. There will be no project outflow of cash to make the IFA payments, and...

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