Meridiam announces financial close on maryland purple line light rail transit project

Meridiam, a leading global investor and asset manager specializing in public and community infrastructure announced today that its team, Purple Line Transit Partners, LLC comprised of Meridiam, Fluor Enterprises Inc., and Star America Purple Line, LLC, has 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). Meridiam is a 70% equity provider, with Fluor Enterprises, Inc. and Star America each providing 15% of the equity.

Located in the Washington Metropolitan Region, the project includes 21 stations along a 16-mile alignment through Montgomery and Prince George’s counties, just south of the Capital Beltway. The financing included an $875 million TIFIA loan from United States Department of Transportation and $367 million in proceeds from “Green Bond” designated 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 US P3 market which generated significant savings for MTA.

The approximately $2 billion Purple Line Light Rail Project will extend from Bethesda, Maryland, in Montgomery County to New Carrollton, Maryland, 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.

“The Purple Line project closing reflects the strong partnership that our team has forged with MDOT/ MTA following a comprehensive and competitive tender and closing process. We are proud to be associated with this essential project that will bridge communities by providing a sustainability focused transit option to the DC metropolitan area”, said Jane Garvey, Chairman, Meridiam North America and Purple Line Partners Board Director.

Backed by US pension funds and insurance companies, Meridiam North America draws on deep US transportation and PPP experience and has closed 7 projects since 2009, including the Port of Miami Tunnel in Florida, the Long-Beach Courthouse Project in California, and earlier this month on June 1st, the LaGuardia Airport Terminal B Redevelopment Project in New York.

"Projects like the Purple Line are extremely encouraging markers in the evolution of P3 in the US market. Our US team looks forward to the opportunity to delivering a best practice example of light rail transit to the full spectrum of Maryland Purple Line stakeholders, beginning with the communities served by the project", said Thierry Déau, Meridiam’s CEO and Founder.