Project Financing and Implementation
| In 1992, CRSS's majority interest in the CPTC was purchased by Peter Kiewit Sons, Inc. (an American construction company) and Cofiroute SA (a French toll road operator). Granite Construction also joined CPTC as a limited equity partner and the construction contractor for the project. CPTC executed its financing of the SR-91 Express Lanes on July 20, 1993-a milestone known as "financial close." Together, three banks-Citicorp, Banque Nationale de Paris, and Société Générale of France-provided $65 million in variable-rate bank loans with a 14.5-year term. Peter Kiewit Sons provided an additional $35 million project loan, which it ultimately sold to CIGNA Investments in 1994. CPTC also provided $19 million in private equity for the project and made commitments to provide additional equity in the event of revenue shortfalls. | 91 Express Lanes
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The 91 Express Lanes opened to service on December 20, 1995. CPTC had up to 35 years to pay off over $100 million in taxable project debt and to generate a return on investment.
The project was constructed on schedule and on budget despite the challenges of phasing the project so that it did not disrupt traffic on SR-91, which carried over 255,000 vehicles per day.
In early 2002, CPTC refinanced its remaining debt on the project with $135 million in taxable toll revenue bonds. Then in April 2002, OCTA reached an agreement to purchase the operating franchise for the express lanes from CPTC for $207.5 million. The sale occurred in January 2003. OCTA financed its purchase of the SR-91 Express Lanes with $72.5 million in cash from internal reserves and assumption of CPTC's recently issued toll revenue bonds. Later that year, OCTA refinanced the entire interest in the 91 Express Lanes by issuing $200 million in tax-exempt toll revenue bonds.
Following the sale, OCTA eliminated tolls for HOV 3+ vehicles during most periods, and Caltrans added a fifth general purpose lane in each direction.