Case Studies

  • Southeastern Pennsylvania Transportation Authority (“SEPTA”)

    PFM has worked with the Southeastern Pennsylvania Transportation Authority (“SEPTA”) since 1991.  We helped establish the Authority’s dedicated funding source, which provided over $700 million of debt capacity.  SEPTA financed rail cars, light rail vehicles and the purchase of a new building with the proceeds.  Subsequent to the initial financings, PFM assisted SEPTA with refinancing this debt.  We also advised SEPTA on a $65 million cross-border leveraged lease with Swedish investors, helping to:

    • select the broker and counsel
    • analyze the economics and risks associated with this transaction, and
    • negotiate the terms and conditions for the lease. 

    In addition, PFM assisted SEPTA with the restructuring of a LILO financing.

    PFM worked with SEPTA to evaluate and execute a refunding strategy associated with the exercise of a “swaption” related to its Series 1999 bonds.  As part of this effort, PFM, in concert with the Authority, its underwriter and bond counsel, identified remedies to language under Commonwealth statutes which had limited the Authority’s ability to issue the bonds. PFM helped the Authority secure an upgrade on its bonds by all three rating agencies and advised on the pricing and execution of the transaction.

    More recently, PFM advised SEPTA on its strategy to finance the acquisition of new regional rail cars and the rehabilitation of its Wayne Junction Intermodal facility through the issuance of bonds secured by the Authority’s share of Section 5309 Fixed Guideway Modernization Formula funds.  As part of our work for the Authority, PFM took the lead in developing the credit structure and advised the Authority on the terms of a letter of "no prejudice" from the Federal Transit Administration that met both the requirements of the capital markets and the rating agencies.  We also advised on the structure and pricing of the bonds. The Authority secured A1/A+ ratings and successfully priced and closed the transaction in August 2011.




    These materials are based on factual information from actual projects that The PFM Group of companies has engaged in for a client. They are for general information purposes only and are not intended to provide specific advice or a specific recommendation. The results of individual projects will vary significantly depending upon the size and structure of each transaction, permitted investments, prevailing market conditions at the time of the transaction, and other events or circumstances beyond our control. Past performance does not necessarily reflect and is not a guaranty of future results. The information contained in these case studies is not an offer to purchase or sell any securities.