Ferrovial Clarifies Financing Terms for Nashville I-24 Express Lanes Project

✦ Meridian Analysis

Ferrovial has moved the I‑24 Express Lanes project in Nashville from the bidding stage to a signed financing agreement, confirming the terms that will underpin the $21 billion present‑value concession. The company disclosed to the CNMV that the earlier $24.8 billion headline combined present‑value and nominal components, with $7.7 billion of nominal construction payments scheduled between 2027 and 2033 and a further $140 billion of concession cash‑flows over the 50‑year term. The deal is structured as a classic project‑finance transaction: Ferrovial, as the concessionaire, will raise debt capped at a 75 %‑25 % debt‑to‑equity ratio, while the Tennessee Department of Transportation (TDOT) retains a revenue‑share trigger that activates once base‑case toll receipts are exceeded. The commercial agreement with the DriveTN consortium, signed on 30 September, sets the financial close for the third quarter of 2027 and incorporates a deferred settlement of concession values through 2085. The arrangement follows a lawsuit filed by ACS and Acciona, which contest Ferrovial’s award of the contract. Ferrovial’s share price rose more than 8 % on the news. The same legal dispute was reported by Meridian on 15 October, when ACS and Acciona took Ferrovial’s €30 billion US contract to court. Deal professionals will be watching for the final financing package, including the identity of the senior lenders, the pricing of the debt tranche and any covenant structure tied to the revenue‑share mechanism. The Q3 2027 financial close will be a key milestone for confirming the capital structure and for assessing the impact on Ferrovial’s balance sheet and cash‑flow profile.

The Meridian Weekly