Press Releases

JTA Raises $100.5 Million in Sale of Revenue Bonds

The Jacksonville Transportation Authority (JTA) announced that it has closed on $100.5 million in Series 2015 Revenue Bonds. The revenue bonds, underwritten by J.P. Morgan, are comprised of serial bonds due from 2017 to 2036, with a true interest cost of 3.04%.

“The proceeds from the bond issuance will provide immediate funding for the construction of roadways and major corridor improvements, including sidewalks, bus shelters, lighting, bicycle paths and landscaping,” said JTA Chairman Scott L. McCaleb. “JTAMobilityWorks will create jobs and put people to work in our community.”

With interest rates near all-time lows and construction costs down, JTA moved swiftly as a first time independent issuer to put together a finance plan. This entailed establishing a complex legal framework, conservative financial strategy, strong credit rating, and successful pricing.

The strong demand allowed JTA and its advisors to negotiate better pricing. The cost of issuance was kept well below similar transactions made by the City of Jacksonville and JEA.

The bonds will be paid off by 2036 through the extension of the Local Option Gas Tax. In July 2014, JTA successfully negotiated a 20-year extension whereby 1 cent of every gallon goes to the City of Jacksonville and 5 cents of every gallon goes to JTA to pay debt service and fund transit operations.

“This financing is a milestone for JTA,” said JTA Chief Executive Officer Nathaniel P. Ford Sr. “It allows us to develop a robust debt management program to leverage JTA’s financial position for the benefit of Jacksonville and surrounding areas through construction and transit operations. It is a reflection of the market’s high level of confidence and trust in JTA’s leadership team and solid financial position.”

The bonds received an AA rating with stable outlook from Standard & Poor’s Ratings Services and AA- with stable outlook from Fitch Ratings in December 2014.

For information about riding JTA, please contact the JTA’s customer service line at 904.630.3100; TDD 904.630.3191 or visit www.jtafla.com.