Fluor Announces Financial Close on Maryland Purple Line Light Rail Transit Project
June 20 2016 - 4:08PM
Business Wire
Fluor to design, build, finance, operate and
maintain new 16-mile rail system
Fluor Corporation (NYSE: FLR) announced today that its Purple
Line Transit Partners team, comprised of Fluor, Meridiam
Infrastructure Purple Line, LLC, and Star America Purple Line, LLC,
reached financial close to design, build, finance, operate and
maintain the Purple Line project for the Maryland Department of
Transportation (MDOT) and the Maryland Transit Administration
(MTA).
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Fluor is participating in the entire 36-year life cycle of the
$5.6 billion project, which includes a $2 billion design-build
contract. The company brings robust public-private partnership (P3)
experience and industry-leading ability to successfully finance and
manage complex megaprojects. Fluor plans to book its share of the
contract value this quarter.
The financing includes an $874.6 million Transportation
Infrastructure Finance and Innovation Act (TIFIA) loan from the
United States Department of Transportation and $313 million in
“Green Bonds” from Private Activity Bonds underwritten by JP Morgan
and RBC Capital Markets. Supported by contracts backed by the
investment grade credit ratings of the Maryland Commonwealth
Transportation Trust Fund and Fluor Corporation, the bonds were
sold at the lowest interest rates ever achieved in the U.S. P3
market, which generated significant savings for MTA.
“Fluor and our partners have successfully achieved financial
close through innovative financing and proven integrated solutions
approaches that result in a long-term partnership with the state of
Maryland to design, build, finance, operate and maintain this
world-class project,” said Hans Dekker, president of Fluor’s
infrastructure business.
Fluor is the managing partner of the design-build team, Purple
Line Transit Constructors, comprised of Fluor Enterprises Inc., The
Lane Construction Corporation, Traylor Bros., Inc., and includes
subcontractor Atkins North America, Inc., as the lead designer. The
Purple Line Transit Constructors team has begun initial design and
survey work with construction slated to start later this year and
passenger service scheduled for early 2022. Following the
construction, Purple Line Transit Operators, a Fluor-led team
comprising Fluor Enterprises, Inc., Alternate Concepts, Inc., and
CAF USA, Inc., will provide 30 years of operations and maintenance
services.
Located in the Washington Metropolitan Region, the project
includes 21 stations along a 16-mile alignment extending from
Bethesda, Md., in Montgomery County to New Carrollton, Md., in
Prince George’s County. This new line will provide connections to
several existing transit providers and improve mobility to major
economic and job centers, as well as the University of Maryland in
College Park.
"Purple Line Transit Partners is pleased to reach financial
close on this important project,” said Herb Morgan, CEO, Purple
Line Transit Partners. “This milestone, plus the recent Board of
Works action approving the P3 contract, solidifies Maryland’s
leadership in protecting and enhancing the state's fiscal integrity
by advancing a public-private partnership project that will
transfer construction, operation, maintenance and performance risks
to the private partners all while ensuring riders and stakeholders
receive improved mobility, environmental compliance and safety. Our
team is looking forward to working with Maryland communities to
start construction later this year and deliver this innovative
project at a fixed-price and on schedule."
About Fluor Corporation
Fluor Corporation (NYSE: FLR) is a global engineering,
procurement, fabrication, construction and maintenance company that
designs, builds and maintains capital-efficient facilities for its
clients on six continents. For more than a century, Fluor has
served our clients by delivering innovative and integrated
solutions across the globe. With headquarters in Irving, Texas,
Fluor ranks 155 on the FORTUNE 500 list with revenue of $18.1
billion in 2015 and has more than 60,000 employees worldwide. For
more information, please visit www.fluor.com or follow us on
Twitter @FluorCorp.
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Fluor CorporationMedia RelationsBrian Mershon,
469-398-7621orBrett Turner, 864-281-6976orInvestor RelationsGeoff
Telfer, 469-398-7070orJason Landkamer, 469-398-7222
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