The Mid-Bay Bridge Authority has approved refinancing its outstanding debt on the Mid-Bay Bridge and Spence Parkway in order to capitalize on lower interest rates, save money and mitigate a scheduled toll increase in 2016.
At its April 16 meeting, Executive Director Van Fuller and the finance team presented a preliminary refinancing structure that cuts the average cost of debt down from 6.7 percent to a projected rate of 4.3 percent. Additional highlights of the refinancing plan include:
* Reducing required revenue to operate the system and service debt in 2016 from $30.7 million to an estimated $19.7 million.
* Reducing required revenue at the peak of annual debt service in 2023 from 37.2 million dollars to approximately $23.3 million.
* Reducing annual debt payments by $6.3 million in the peak years and by an estimated $3.3 million on average.
The exact annual amount of the Authority’s debt service will be determined before closing in mid May. The Authority will then be able to consider toll schedules that generate the required toll revenues.
“Once the Authority closes the refinancing, it will move to consider a number of toll rate options to address the new, lower debt. The Authority intends to have public meetings to get input on any potential toll changes,” said Fuller.
“Our goal all along has been to reduce costs and keep tolls as low as responsibly possible in order to efficiently sustain our infrastructure while promoting economic activity in the region and facilitating evacuations in the event of an emergency or natural disaster. Our finance team has done a remarkable job, and the Florida Department of Transportation has been a solid partner in this endeavor,” added Fuller.
For more information on the Mid-Bay Bridge, the current tolls and approach roads, visit http://mid-bay.com.