Shearman And Sterling

News May 21, 2015

Shearman & Sterling Advises US Department of Transportation on Inaugural North Carolina P3 Project

Shearman & Sterling advised the United States Department of Transportation, acting through the Federal Highway Administration, in connection with the extension of a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan for the I-77 HOT Lanes Project in North Carolina. The TIFIA loan is for up to $189 million, which will be used to finance certain highway improvements, including the construction of high-occupancy toll (HOT) lanes, to an approximately 26-mile-long portion of the existing I-77 corridor north of Charlotte, North Carolina and an approximately 1.25 mile-long portion of the existing I-277.

The project, a public-private partnership (P3) between the North Carolina Department of Transportation and private developers, is the first P3 transaction completed under North Carolina’s recently-enacted P3 enabling legislation. The financing for the project also included the issuance by the project company of $100 million of tax-exempt Private Activity Bonds (PABs) and an approximately $95 million direct investment by the North Carolina Department of Transportation. When completed, the project will help reduce congestion and is expected to improve travel time for commuters in the corridor.

The Team