Freight News, Rail, Logistics

CenterPoint Inland Port Receives Bond Backings

[ March 18, 2017   //   ]

The CenterPoint Joliet Terminal Railroad LLC in Illinois plans to privately place up to $150 million of unrated Surface Freight Transfer Facilities Revenue Bonds as soon as this spring. Reported by SourceMedia, the intermodal freight facility is one of the only to take advantage of a 12-year-old federal private activity bond program is readying its fourth round of financing.

SourceMedia reveals that the proceeds would “finance the acquisition of land, and construction and equipping of various capital improvements” at the CenterPoint Intermodal Center, according to Illinois Finance Authority documents.

Based in Joliet, Illinois, the 4,000-acre campus encompasses distribution centers, container storage yards, and export facilities.

The private activity bond financing is CenterPoint’s fourth, following a $100 million private placement last year which came after a $75 million issue of surface freight facilities tax-exempt revenue bonds in 2012 and its first sale in 2010 for $150 million.

SourceMedia reports that CenterPoint could seek another $682 million of borrowing through the IFA, according to IFA documents, based on total project costs of $1.26 billion as the facility is built out over the next five to 10 years.

The project has received an additional allocation of $300 million under the U.S. Department of Transportation’s freight transfer facility revenue bond program established in 2005 in the SAFETEA-LU federal transportation authorization. It authorized an initial $15 billion of PABs for qualified projects.