IMG Rebel Advises on $120 Million Chicago Transit Authority "Your New Blue Line" Loan

02/13/2015

On February 3, 2015 the U.S. Department of Transportation (USDOT) closed a $120 million Transportation Infrastructure Finance Innovation Act (TIFIA) loan to the Chicago Transit Authority (CTA) for major improvements to the Blue Line of CTA’s “L” rail service, which will upgrade tracks and stations between the downtown Loop and Chicago O’Hare International Airport. IMG Rebel advised TIFIA on the transaction.

The primary pledge for the TIFIA loan is farebox revenue.

Significant upgrades to the track, power supply, and signal system along the 19-mile stretch of the Blue Line between the Loop and O’Hare Airport stations will reduce and eliminate “slow zones,” resulting in faster, more reliable service. The over 80,000 riders who use the Grand-O’Hare branch daily will also see improvements to stations along the line to enhance accessibility and comfort, from brighter lights and cleaner tunnels to new elevators and artwork.

The TIFIA loan is part of a four-year, $408.7 million Blue Line renovation (known as “Your New Blue”), which will also be supported by $16 million in USDOT’s Transportation Investment Generating Economic Recovery (TIGER) funds awarded to CTA in 2012, state, local, and tax increment sources. The project represents the largest upgrade of the Blue Line since it was extended to O’Hare in 1984.

The TIFIA credit program finances critical transportation infrastructure projects around the country and leverages substantial non-federal investments. IMG Rebel looks forward to continuing to support the USDOT and the TIFIA innovative finance program in the development of vital infrastructure facilities.

For further information, please contact Sasha PageNgo Harry, or Wim Verdouw.