Puerto Rico Tollroads Completes $383 Million Bond Issue

Banco Popular acts as agent

Puerto Rico Tollroads, the operator of the island’s major toll highway concessions under Metropistas, has closed a $382 million bond issuance fully structured and purchased by Puerto Rico’s local banking sector, marking one of the largest locally financed transactions of its kind.

The deal, led by Banco Popular as agent, brought together all three major local banks—Popular, FirstBank, and Oriental—along with Nave Bank, and even participation from Banesco in the company’s broader credit relationships. According to the company, the entire issuance was sold and subscribed at 100% last week.

“The local banks were the ones that structured this transaction,” said Esteban Vélez del Toro, chief financial officer of Puerto Rico Tollroads. “In Puerto Rico it is difficult to have an investment grade, so for local banks to have an asset of this classification on their books is important. They competed with typical private placement structures  in the United States and managed to execute it themselves.”

A Fully Subscribed Local Placement

Vélez del Toro confirmed that the full $382 million was placed immediately. While he declined to disclose the final coupon pending internal clearance, he described the rate as “highly competitive” and consistent with previous transactions the company has executed with the same banking group.

PRTR issued approximately $382.7 million of fixed-rate senior secured notes in three tranches. The first tranche of approximately $170.6 million has a sculpted amortization profile through 2046, with the remaining amount split into two tranches with bullet maturities of $191.3 million and $20.7 million due in 2036 and 2046, respectively.

Asked about the bondholders that purchased  the notes, he added that, historically, local banks retain these instruments on their balance sheets rather than distributing them in the broader bond market, though final decisions rest with each institution.

Purpose: Refinancing Acquisition Debt

The issuance refinances part of the debt used in the December 2023 acquisition of the Puerto Rico toll road concession, a transaction that required a $2.85 billion upfront payment to the Puerto Rico Highways and Transportation Authority.

“That payment required both private equity from our shareholders and a financing component,” Vélez del Toro said. “This issuance is to repay and refinance a part of the loan that was issued for the acquisition. It is a pure and simple refinancing.”

Puerto Rico Tollroads was represented by McConnell Valdés, while the participating banks were advised by PMA and DLA Piper, continuing a pattern of using local and international counsel for major infrastructure financings.

For Vélez del Toro, the transaction underscores the growing sophistication of Puerto Rico’s banking sector in handling large-scale infrastructure financing.

“They have developed a fairly high level of sophistication,” he said. “This solidifies the long-term stability of both us and the banks in terms of strategic assets within Puerto Rico.”

Last week, Fitch Ratings assigned a ‘BBB+’ rating to the $382.7 million of series 2026A, 2026B and 2026C senior secured notes issued by Puerto Rico Tollroads, LLC, (PRTR) and affirmed the ‘BBB+’ rating on PRTR’s existing $1.36 billion senior lien debt. The Rating Outlook is Stable.

According to Fitch, the rating reflects PRTR’s extensive toll road network, an essential transportation link for a growing commuter base in the Commonwealth of Puerto Rico, despite the region’s economic volatility and weak demographic trends. The rating also reflects the project’s long concession life and adequate toll adjustment mechanism.