As part of the Transportation Corridor Agencies’ (TCA) Strategic Plan, the San Joaquin Hills Transportation Corridor Agency (SJHTCA) has executed an early paydown of $47 million in junior lien bond debt. The Boards’ approved “Early Bond Paydown Program” is a multi-year plan that includes bond paydown opportunities through the current Strategic Plan end date in 2029 and also includes opportunities into 2030 for both SJHTCA and the Foothill/Eastern Transportation Corridor Agency (F/ETCA).
The early paydown of bond principal – bonds that were issued in 2014 and had maturity dates of 2044 and 2049 – saves SJHTCA approximately $45 million in interest payments. SJHTCA paid off the bonds early with cash reserves when the bonds were callable this month.
“Executing early bond paydowns demonstrates the Boards’ continued commitment to strong fiscal stewardship as outlined in our Boards’ approved Strategic Plan,” said SJHTCA Board Chair and Santa Ana City Councilmember David Penaloza. “By taking advantage of these early paydown opportunities when bonds become callable, we are reducing future interest costs, strengthening our financial position and ensuring we continue delivering reliable operations and meaningful capital improvements for the region.”
By the end of 2030, TCA plans to pay down another $670 million of bonds early, saving an additional $564 million in interest. This future debt reduction, when combined with the current reductions of $1.9 billion, will collectively reduce debt by $3.1 billion.
SJHTCA and F/ETCA are two joint powers authorities created to plan, finance, construct and operate the 420 lane miles that comprise the 73, 133, 241 and 261 Toll Roads.
The Toll Roads provide a choice for drivers and the tolls collected are used to repay the debt incurred to construct the system and fund on-going operations and improvements.
The Toll Roads system, which represents 20% of Orange County’s highways, is the largest toll road network in California.
The Transportation Corridor Agencies (TCA) are two joint powers authorities formed by the California Legislature in 1986 to plan, finance, construct and operate Orange County’s public toll road system comprised of the 73, 133, 241 and 261 Toll Roads.
