Gerald Desmond Bridge Project

IMG Rebel provided financial advisory services to the TIFIA office regarding the financing of the landmark Gerald Desmond Bridge project.

The Gerald Desmond Bridge is a vital part of the U.S.’s national infrastructure network
Since its opening in 1968, the Gerald Desmond Bridge has become a critical part of the U.S.’s transportation system, with nearly 15% of the nation’s waterborne cargo passing across the bridge. It is also a critical access route for the Ports of Long Beach and Los Angeles, downtown Long Beach, and surrounding communities. The $1.28 billion project will replace the existing five-lane bridge with a new six-lane bridge that will ease traffic congestion issues.

U.S. Department of Transportation’s Transportation Infrastructure Finance and Innovation Act (TIFIA) program will finance a portion of the project costs
The TIFIA program will provide a $325 million long-term loan to the Port of Long Beach, the project sponsor. The TIFIA funding will provide the port with greater flexibility in structuring its overall capital program. This flexibility will also allow the port to structure its financing program to maximize borrowing capacity while maintaining its debt coverage ratios on the senior debt outstanding. The Project will also be funded from a variety of local, state and federal sources.

IMG Rebel has leveraged its ports expertise to support TIFIA as a lender
IMG Rebel spearheaded the assessment of key credit risk factors including reviewing the port’s competitiveness, potential impact of the Panama Canal, the port’s project capital program spending, and the nature of long-term leases. IMG Rebel’s ports experts leveraged their comprehensive knowledge of trends in the ports space and relationships with key players in the sector in assisting TIFIA conduct their diligence on the credit quality of the port.

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