Media Relations Contact:
February 06, 2001
DART Board Approves $2.9 Billion Debt Program
The Dallas Area Rapid Transit (DART) Board of Directors has approved a Master Debt Resolution that will allow DART to issue up to $2.9 billion of long-term bonds over the next 15 to 20 years.
"This funding will allow us to construct additional light rail projects to Fair Park, Pleasant Grove, Carrollton, Farmers Branch, North Irving and Dallas/Fort Worth International Airport and build 110 miles of High Occupancy Vehicle (HOV) lanes," said DART Chief Financial Officer Chris Poinsatte. DART's total capital program through 2015 is in excess of $5 billion.
Also on January 23, the Board approved the issuance of up to $650 million of commercial paper as part of a First Supplemental Debt Resolution. DART has received short-term ratings of P1+/F1+/A1 for its short-term debt program on its own credit quality. A consortium of national and international banks will provide the credit liquidity for the program.
"We expect to sell approximately $500 million of commercial paper on or about February 8, 2001," said Nate Hallett, DART's Treasurer. "We will use these funds to retire approximately $330 million of commercial paper previously issued under our existing Credit Facility Agreement with our current commercial paper banks; refund $150 million of our North Central Light Rail Transit Notes issued under a separate line of credit; and fund construction." DART's commercial paper dealers are Goldman Sachs and Ramirez & Company.
DART received voter approval of its $2.9 billion debt program on August 12, 2000 by a 77 percent margin. This was reported to be the largest bond referendum ever passed in the State of Texas. DART expects to issue its first bonds under the Master Debt Resolution in June 2001.
-- 30 --