Madrid, 12th June, 2018
The ACS consortium (LAX Integrated Express Solutions, or LINXS), participated by IridiumÂ’s subsidiary ACS Infrastructure Development, achieved Financial Close for its iconic PPP rail project at Los Angeles International airport (LAX) on Friday. The consortium successfully placed 1.3 billion dollarsÂ’ worth of long-term tax-exempt private activity bonds (PABs) in the U.S. capital markets in an issuance that was almost seven times oversubscribed.
The concession, signed back in April of this year, represents the first Automated People Mover (APM) project procured through a public-private partnership (PPP) in the United States. It has a total 30-year term and includes the design, construction and long-term operation and maintenance of the new APM system at LAX. The project includes a total of 6 stations along a 3.6 km, elevated dual guideway to connect passengers to and from the central terminal area of LAX with intermodal transportation facilities as well as a new Consolidated Rent-A-Car facility being separately procured and in which the Iridium is also currently bidding. The consortium will be responsible for the delivery of the 44 Bombardier APM vehicles, as well as the construction of a 7,000 sq meter maintenance and storage facility. Early design and construction works have already begun, and construction is anticipated to be completed by early 2023.
ACS/HOCHTIEF participates in the project through its subsidiaries ACS Infrastructure Development (Iridium) and HOCHTIEF PPP Solutions, which each have an 18% share in the concessionaire (ACS Group 36%) and 12.5% share in the operations and maintenance joint venture (ACS Group 25%), as well as through Dragados USA and Flatiron Construction, which each have a 20% share in the construction joint venture (ACS Group 40%). The other members of the consortium include Fluor, Balfour Beatty and Bombardier.
In addition to the 1.3 billion dollars long-term PABs, underwritten by Bank of America Merrill Lynch, Citigroup, and Ramirez & Co., Inc., the financing for the project also includes a 269 million dollars short-term bank loan provided by a syndicate of five international banks: CIBC, Mizuho Bank, SMBC, the Korea Development Bank, and TD Bank.