Fifteen months after filing for chapter 11 protection, SH 130 Concession Co., the private entity that operates and maintains the 41-mile southern section of state Highway 130, announced in late June the new ownership, new senior management and $260 million in new financing, Engineering News-Record reported yesterday. Strategic Value Partners LLC is leading the new ownership group, while Louis Berger Services will operate and maintain the roadway. The new team replaces Spanish-owned Cintra and Zachry American Infrastructure, which, together, formed SH 130 in 2005 to develop and manage the roadway. They borrowed funds from a combination of U.S. and international banks, combined with a Transportation Infrastructure Finance and Innovation Act loan, explains Andy Bailey, the new CEO of the replacement concession. The partners put up equity and took on about $1.4 billion in debt to acquire rights of way, design the route and pay concessions. But income generated by tolls did not meet the original projections, which were established just before the Great Recession hit, Bailey explains. Toll rates along SH 130 have remained the same and were unaffected by the bankruptcy or restructuring. Those rates are set with the Texas Dept. of Transportation in the company’s Facility Concession Agreement, which still remains in place.
