Rebel advised the US Department of Transportation’s Build America Bureau (BAB) on the creditworthiness evaluation and loan negotiations for the Gerald Desmond Bridge Replacement Project at the Port of Long Beach (POLB).
The replacement of the bridge will allow for better vehicular traffic flow, while also enabling the passage of larger vessels in the inner port area. Rebel advised on the initial Transportation Infrastructure Finance and Innovation Act (TIFIA) loan in 2013 and then again in 2020 when cost overruns necessitated a restructuring resulting in the $500M ultimate loan.
To support the project we performed a creditworthiness assessment and conducted due diligence to evaluate the risk factors that could influence the project, during the construction and the operational stages. Our work included analyzing the financial strength of POLB’s terminals and other commercial facilities.
We also assisted the BAB in negotiations on the loan repayment structure, credit features, and other terms. Rebel developed various sensitivities to ensure the complete and timely repayment of the proposed loan, even under downside scenarios.