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Rail News Home Passenger Rail

3/24/2003



Rail News: Passenger Rail

CTA sells bonds to fund Cermak renovation


Chicago Transit Authority (CTA) recently sold $207.2 million in Capital Grant Revenue Bonds to help fund the Cermak (Douglas) Branch renovation on the Blue Line.



Because of strong investor demand in the bond market, CTA expects to pay interest rates as low as 1.27 percent for bonds maturing between 2005 and 2008. The bonds received an A3 rating from Moody’s Investors Service and an A- rating from Standard & Poor’s — the highest rating for this class of debt issuance, according to a prepared statement.



The CTA last issued long-term capital debt in 1953 for $6.9 million.



Expected to be completed by January 2005, the $482.6 million Cermak (Douglas) Branch renovation includes replacing track, rail ties and footwalks; rebuilding or renovating eight stations; removing and replacing 350 elevated structural spans; installing more than 700 caissons; and upgrading the signal and communications system.


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