Financial Advisor: Estrada Hinojosa
Estrada Hinojosa served as financial advisor for the City of Laredo in the issuance of seven toll bridge financings between 1996 and 2005 for a total par amount of nearly $100 million. The firm helped to develop the initial and subsequent plans of finance for the projects and refundings. All of the transactions were negotiated sales. Estrada Hinojosa guided the City through the entire documentation process, and negotiated on behalf of the City during the pricings. Proceeds from these bonds were used to construct the U.S. portion of the new Laredo Northwest International Bridge (Bridge No. 4); to install enhanced toll collection systems and pedestrian walkways on several of the bridges; to construct facilities and approaches; and to refund bonds for debt service savings.
To succeed, the team would need to bring together pubic and private interests to complete very complex financings. The project would require a combination of foreign, federal, state, local and private funding. Challenges included working out how financing and construction costs for Bridge No. 4 could be shared by public and private interests from the U.S. and Mexico. The cost to construct the U.S. portion of Bridge No. 4 was estimated at $100 million. Another challenge was gaining eligibility for a State Infrastructure Bank (SIB) loan of $27 million, administered by the Texas Department of Transportation (TxDOT). The SIB would offer the client more attractive terms than are otherwise available through conventional financing sources, but there had never been an SIB loan closed in Texas before.
How We Did It and What It Means To You:
This is just one of many examples of how Estrada Hinojosa has overcome challenges to assist clients in creating success stories. For the details on how we achieved these results and other case studies, contact us.