Shearman & Sterling represented the U.S. Department of Transportation (USDOT) in connection with the extension of an approximately $629.5 million secured loan to the Central Puget Sound Regional Transit Authority (Sound Transit), which will fund the Federal Way Link Extension Project in Seattle, Washington. The loan, issued under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program, will fund project costs for the light rail line extension, which will expand Sound Transit’s Link light rail service from the Angle Lake Station to the Federal Way Transit Center in south King County. The Federal Way Link Extension Project includes 7.8 miles of light rail, three new stations, 20 new light rail vehicles and 1,200 parking spaces. Construction of the project is scheduled to begin in 2020 and be completed by 2024. Total project costs are estimated to be more than $3 billion.
Sound Transit received additional federal support for the Federal Way Link Extension project through a $790 million full funding grant agreement from the Federal Transit Administration (FTA), pursuant to which FTA committed to provide such funds to Sound Transit, subject to annual federal appropriation.
The Federal Way Link Extension Project financing is the final project to be implemented under Sound Transit’s master credit agreement with USDOT, an innovative financing instrument designed to streamline the TIFIA loan extension process for Sound Transit as it builds out its ambitious light rail and bus rapid transit expansion program across the Seattle metropolitan region. Shearman & Sterling previously advised USDOT on a $658 million loan for the $3.3 billion Lynnwood Link Extension Project and a portion of the $265.6 million O&M Facility East Project, a $615.3 million loan for the $1.9 billion Northgate Link Extension Project and a $87.7 million loan for a further portion of the O&M Facility East Project.