An ACS-led consortium, SR 400 Peach Partners, has secured a significant public-private partnership (P3) financing with financial close on the SR 400 Express Lanes Project in Metro Atlanta. The consortium — consisting of ACS Infra (IRIDIUM), Acciona, and Meridiam — has obtained combined capital investment totaling $10.99B to fund the project.
This is followed by the completion of a $3.89 billion U.S. Department of Transportation (USDOT) Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, and the successful issuance of $3.44 billion of tax-exempt private activity bonds (PABs).
Both financing transactions are record-breaking deals. The PABs offering, which received orders from over 90 investors and was approximately 1.7 times oversubscribed, is the largest bond financing on record for a U.S. highway asset. It also will be the largest municipal deal of the year. The TIFIA loan, being issued by the USDOT’s Build America Bureau, is the largest ever issued through the program for any asset to date.
Georgia’s First Revenue-Risk Managed Lanes Project
The State Road and Tollway Authority (SRTA) and Georgia Department of Transportation (GDOT) purchased the SR 400 Express Lanes Project. It is Georgia’s first — a revenue-risk managed lanes project where the private partner takes toll revenues on risk.
The consortium will build about 16 miles (25 kilometers) of new express toll lanes along the SR 400 corridor to improve mobility, reduce congestion, and enhance travel time reliability in and around metro Atlanta. After completing construction, the consortium will operate both the new express lanes and the existing free general-purpose lanes for 50 years.
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How the Project Is Financed
All three partners, ACS Infra, Acciona, and Meridiam, are investing 33.33% equity financed fully by letters of credit at financial close. Total investment includes:
A $3.89 billion TIFIA loan from the USDOT
$3.44 billion tax-exempt PABs
Estimated $4.6 billion design-build cost of construction
A $3.8 billion upfront concession payment to GDOT and SRTA
Construction Led by FlatironDragados
FlatironDragados, the 50/50 joint venture partnership between Flatiron (U.S. civil construction subsidiary of ACS Group) and Dragados (also a subsidiary of ACS Group), will be responsible for designing and constructing the project. They will spearhead the physical build-out of the express lanes infrastructure, from planning through ultimate delivery.
The consortium will add two managed lanes in each direction along 16 miles of SR 400 and will include additional managed lanes in selected locations as needed.
A Necessary Investment for a Growing Corridor
This SR 400 corridor is a critical north-south connector in Georgia, connecting Atlanta’s employment centers to housing in Fulton and Forsyth counties. Atlanta is the nation’s third-fastest-growing city and contains one of the world’s busiest airports. The corridor will once again experience growing travel demand when 144,000 new residents and 114,000 new jobs arrive by 2050.
The project is part of the Georgia Major Mobility Investment Program (MMIP) and serves to improve major road connections as well as alleviate congestion, particularly around SR 400 and I-285 areas.
A Milestone for the ACS Group
Financial close is an achievement and a culmination of over a year of collaboration with GDOT and SRTA,” stated Nuria Haltiwanger, ACS Infra Chairwoman and CEO, IRIDIUM CEO, and ACS Group Chief Investment Officer for Infrastructure.
“We are honored to be collaborating with the State of Georgia on a project that will provide badly needed relief from congestion in the metro Atlanta region while creating vast economic development, job creation, and long-term investment opportunities in the region.”
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SR 400 Express Lanes Project Factsheet
Project Overview
Location: Metro Atlanta, Georgia
Scope: 16 miles of new express toll lanes along SR 400 corridor
Contract Duration: 50 years (design, build, finance, operate, maintain)
Project Type: Revenue-risk managed lanes (Georgia’s first)
Financial Structure
Total Investment: $10.99 billion
Financing Components:
TIFIA Loan: $3.89 billion (largest ever issued)
Private Activity Bonds (PABs): $3.44 billion (largest highway bond financing in U.S. history)
Design-Build Costs: $4.6 billion (estimated)
Upfront Concession Fee: $3.8 billion (paid to GDOT/SRTA)
Key Partners
SR 400 Peach Partners:
ACS Infra (IRIDIUM) – 33.33% equity
Acciona – 33.33% equity
Meridiam – 33.33% equity
Public Partners:
Georgia Department of Transportation (GDOT)
State Road and Tollway Authority (SRTA)
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Design-Build Contractor:
FlatironDragados (50/50 joint venture between Flatiron and Dragados)
Project Details
New Infrastructure: Two managed lanes in each direction (additional lanes in select sections)
Existing Assets: Consortium will also operate/maintain existing free general-purpose lanes
Purpose: Improve mobility, reduce congestion, increase travel time reliability
Regional Impact
Growth Projections by 2050: 144,000 new residents, 114,000 new jobs in corridor
Strategic Importance: Key north-south route connecting Atlanta job centers to residential areas
Part of Georgia’s Major Mobility Investment Program (MMIP)
Record-Breaking Achievements
Largest TIFIA loan ever issued ($3.89B)
Largest highway bond financing in U.S. history ($3.44B PABs)
PABs offering was 1.7x oversubscribed with 90+ investors
Expected to be largest municipal bond deal of 2024/2025
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