The Oklahoma Turnpike Authority (OTA) is poised to enter the municipal bond market with a substantial $1.3 billion offering aimed at financing an expansive roadway initiative. This ambitious project, known as the ACCESS Oklahoma program, has drawn both interest and criticism since its inception. With this new issuance, OTA plans to allocate approximately $1.087 billion for tax-exempt second senior revenue bonds while setting aside $223.3 million for the refinancing of existing debt. Goldman Sachs will act as the bookrunner facilitating this financing, with the pricing anticipated for the week of January 27, conditional on favorable market conditions.
Launched in February 2022 by Governor Kevin Stitt, the ACCESS Oklahoma program seeks to improve transportation infrastructure through the widening of existing toll roads and the construction of new routes. Initially estimated to require $5 billion, the total projected cost of the program has ballooned to approximately $8.2 billion. Such a drastic increase in funding highlights the challenges of managing public infrastructure projects, which often face financial risks. To cover this expanded budget, OTA’s board recently approved a toll increase, igniting debates among state lawmakers who are advocating for greater regulatory oversight of such hikes.
The path to financing has not been entirely smooth. When OTA first sought to issue $500 million in bonds for the ACCESS Oklahoma program in October 2023, its efforts faced delays due to litigation brought by property owners affected by the proposed tollway expansions. However, following a favorable ruling from the Oklahoma Supreme Court, which upheld OTA’s plans in a narrow 6-3 decision, the initial bond issuance received a green light. Notably, credit ratings for these bonds remained robust, with Moody’s assigning an Aa3 rating and S&P Global and Fitch Ratings providing an AA-minus rating, all reflecting stable outlooks.
Despite the legal victories and favorable credit assessments, the ACCESS Oklahoma program is still meeting resistance. Advocacy group Oklahomans for Responsible Transportation has expressed concerns regarding the project’s feasibility and financial stewardship. In light of the substantial bond issuance and ongoing infrastructure improvements, they are advocating for a third-party evaluation of the program and a comprehensive compliance audit, as mandated by Oklahoma Attorney General Gentner Drummond. They argue that such measures are essential for safeguarding taxpayers’ interests before any further financial commitments occur.
The anticipated bond offering by the Oklahoma Turnpike Authority represents a critical step in advancing the controversial ACCESS Oklahoma initiative. With a significant financial undertaking paired with ongoing debates about toll hikes and infrastructure oversight, the OTA finds itself at a crossroads. As the public remains skeptical and advocates call for increased accountability, the success of this venture will depend not only on market conditions but also on effective community engagement and transparent financial practices. The coming weeks will be pivotal in determining the future of transportation infrastructure in Oklahoma.
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