Legal Structure for HRTF Revenue Bonds
At its May 19, 2016 Regular meeting, the Commission authorized preparation by bond counsel of a draft Master Indenture and form of Series Indenture providing for the legal structure of tax‐exempt Hampton Roads Transportation Fund (“HRTF”) Revenue Bonds (as defined below), and preparations to obtain judicial validation of such structure, with specific bond issues subject to further review and approval by the Commission. Virginia Code Section 33.2‐2606 permits the Commission to issue bonds supported by revenues of the Hampton Roads Transportation Fund (“HRTF Revenue Bonds”). Although the Commission’s current plan is to utilize pay‐as‐you‐go (“pay go”) financing, the considerable lead time involved in preparing and judicially validating a legal/contractual structure for tax‐exempt HRTF Revenue Bonds makes it advisable for the Commission to authorize advancing judicial validation at this time. This action would preserve the Commission’s flexibility to issue HRTF Revenue Bonds in the future for purposes of reimbursing pay go expenditures it has previously made, or to allocate funds to new projects. There will be no actual bond issue without further review and formal approval by the Commission. Toll revenues would not be required to support any HRTF Revenue Bonds.
At its June 9, 2016 meeting, the HRTAC Finance Committee was briefed on the drafted Master Indenture and form of Series Indenture providing for the legal structure of tax‐exempt Revenue Bonds. The Finance Committee took action to recommend that the Commission approve the structure and authorize bond counsel to file a motion of judgement to validate such structure and related matters. At its June 16, 2016 meeting, the Commission adopted the proposed Legal Structure for Future HRTF Revenue Bonds and authorized bond counsel to file a motion for judgement in Chesapeake Circuit Court to validate such structure and related matters. The legal structure for the HRTF Revenue Bonds has been validated by the Chesapeake City Courts.
Form of Supplemental Series Indenture - HRTAC
On September 21, 2017, the Commission endorsed a Debt Management Plan and authorized moving forward with further steps necessary to undertake an inaugural issue of HRTF Revenue Bonds. Based on current market conditions, including attractive long term interest rates. At its December 5, 2017 Finance Committee meeting, the Commission’s Finance Committee recommended moving forward with an inaugural issue of HRTF Revenue Bonds. On December 14, 2017, the Commission was briefed at its Regular Meeting on the recommendation of the Finance Committee, and the Commission adopted HRTAC Resolution 2017-08 authorizing the Commission’s staff, counsel and financial advisor to move forward with such bond issue. On January 18, 2018, HRTAC issued its Preliminary Official Statement (POS) and Road Show to market the HRTAC Senior Lien Revenue Bonds Series 2018 A backed by the Hampton Roads Transportation Fund. The POS for the HRTAC Series 2018 A may be viewed by clicking here and the Official Statement can be found here.
Resolution 2017-08: Authorizing the Issuance of up to $500,000,000 in Aggregate Principal Amount of Hampton Roads Transportation Funds Senior Lien Revenue Bonds
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