RTD considers refinancing FasTracks bonds issued for $300 million
The proposed refunding could release an $18 million reserve and reduce federal subsidy risk, though staff projects no significant overall interest savings.
The Regional Transportation District is considering refinancing all or part of its taxable Series 2010B FasTracks bonds, which were originally issued for $300 million. The proposed transaction could eliminate an $18 million restricted debt-service reserve and reduce the risk of federal subsidy reductions, according to the RTD finance committee packet.
The Finance and Planning Committee is scheduled to consider the proposal Sept. 15, followed by consideration by the RTD Board. Neither body had acted as of Sept. 12.
The packet does not state how much of the 2010B debt remains outstanding or how much new debt RTD would issue. RTD reported $2.235 billion in outstanding FasTracks bond principal as of Dec. 31, 2025, but that figure covers the broader FasTracks debt portfolio.
Staff does not project significant overall interest savings under current market conditions. The transaction could lower debt service in some years, and a proposed resolution would prohibit annual debt service from exceeding debt service on the refunded bonds before accounting for the federal subsidy. The packet does not include an annual savings estimate or final debt-service schedule.
The proposed structure could also allow RTD to refinance the bonds again within 10 years. A draft resolution would authorize the general manager and chief financial officer for one year to set final terms, select underwriters, execute transaction documents and decide whether to proceed. It proposes a final maturity no later than Nov. 1, 2050, and a maximum net effective interest rate of 8%.