The Oklahoma Turnpike Authority (OTA) is gearing up to enter the municipal bond market with a significant offering of $1.3 billion set for late January. This financial maneuver is aimed at both advancing a contentious expansion initiative and refinancing existing debt obligations. The OTA’s plan to issue approximately $1.087 billion in tax-exempt second senior revenue bonds, along with $223.3 million in refunding bonds, underscores the Authority’s ambitious infrastructural goals despite facing widespread criticism and litigation.
The financing will support the OTA’s ACCESS Oklahoma program, launched by Governor Kevin Stitt in early 2022. Initially projected to cost $5 billion, the program’s estimated expenses have ballooned to $8.2 billion, raising eyebrows among state lawmakers and constituents. The objective of ACCESS Oklahoma is to widen existing toll roads and develop new thoroughfares, purportedly to enhance connectivity across communities. However, this expansion has met with strong opposition, particularly due to the toll hikes previously approved to fund the escalating costs of the project. Critics argue that such increases necessitate a greater degree of legislative oversight to ensure accountability.
The upcoming bond issue will be managed by Goldman Sachs as the lead bookrunner, with a preliminary official statement anticipated soon. The OTA plans to conduct investor outreach in major cities, including Chicago, Boston, and New York, to gauge interest and attract potential buyers for the bonds. The first tranche of bond sales related to this program, completed in October 2023, received favorable ratings from Moody’s, S&P Global, and Fitch Ratings, which indicates a robust demand in the municipal bond market for these types of infrastructure projects.
Despite the optimistic outlook, the OTA’s path has been obstructed by legal challenges from property owners affected by the tollway expansion. Recent rulings from the Oklahoma Supreme Court have sided with the OTA, allowing bond issuance to proceed. However, community advocacy groups, such as Oklahomans for Responsible Transportation, remain vigilant, pressing for comprehensive feasibility studies and audits before any further bond sales are conducted. The ongoing investigations into OTA’s practices, mandated by Oklahoma’s Attorney General, add to the scrutiny surrounding this large-scale financial undertaking.
The forthcoming bond issuance represents a critical moment for the Oklahoma Turnpike Authority at a time of both opportunity and apprehension. As the state attempts to navigate the complexities of expanding its infrastructure through the ACCESS Oklahoma initiative, the stakes remain high for all parties involved. How OTA addresses the contentious issues of transparency, community impact, and fiscal responsibility will greatly influence public perception and the project’s long-term viability. Ultimately, this moment is emblematic of the ongoing struggle to balance infrastructural ambition with the realities faced by communities across Oklahoma.