Fluor Announces Financial Close on Los Angeles International Airport Automated People Mover
IRVING, Texas--(BUSINESS WIRE)--Jun 11, 2018--Fluor Corporation (NYSE: FLR) announced today that its joint venture LAX Integrated Express Solutions (LINXS) team reached financial close to design, build, finance, operate and maintain the 2.25-mile Los Angeles International Airport (LAX) Automated People Mover project for the Los Angeles World Airports (LAWA). Fluor plans to book its share of the design and construction contract value in the second quarter of 2018.
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Los Angeles International Airport Automated People Mover project is shown at dusk. (Photo: Business Wire)
The LINXS team is comprised of Fluor, ACS Infrastructure Development, Balfour Beatty, Bombardier Transportation, Dragados USA, Flatiron and Hochtief PPP Solutions. Fluor is participating in the entire 30-year life cycle of the project, which will be delivered under a $4.9 billion design-build-finance-operate-maintain contract.
The financing includes approximately $1.2 billion in Private Activity Bonds, $263 million in bank debt, and equity from Fluor and its partners. The contract includes milestone payments for design and construction progress, availability payments for capital repayment, and availability payments for operating and maintaining the automated people mover.
“Fluor is pleased to have reached financial close more than a month in advance of the deadline and is looking forward to providing this innovative solution for LAWA by extending LAX’s world-class facilities, reducing congestion and providing travel options with time-certainty,” said Terence Easton, president of Fluor’s infrastructure business. “Reaching this milestone in partnership with LAWA will maximize our proven experience from past P3 transit projects to successfully design, build, finance, operate and maintain this megaproject.”
Fluor is the managing partner of the design-build joint venture team, LINXS Constructors, comprised of Fluor, Balfour Beatty, Dragados and Flatiron.
Design and construction is scheduled to begin later this year, with passenger service slated for 2023. The project includes six stations along a 2.25-mile guideway where driverless vehicles will arrive to transport passengers every two minutes during peak periods. This new line will offer ridership capacity of up to 10,000 passengers per hour. LAWA anticipates that it will carry 85 million passengers per year providing a modern, reliable solution to help ease traffic congestion.
Following construction, LINXS Operators, comprising Fluor, ACS Infrastructure Development, Bombardier and Hochtief, will provide approximately 25 years of operations and maintenance services.
About Fluor Corporation
Founded in 1912, Fluor Corporation (NYSE: FLR) is a global engineering, procurement, fabrication, construction and maintenance company that transforms the world by building prosperity and empowering progress. Fluor serves its clients by designing, building and maintaining safe, well executed, capital-efficient projects around the world. With headquarters in Irving, Texas, Fluor ranks 153 on the Fortune 500 list with revenue of $19.5 billion in 2017 and has more than 56,000 employees worldwide. For more information, please visit www.fluor.com or follow Fluor on Facebook, Twitter, LinkedIn and YouTube.
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CONTACT: Fluor Corporation
Brian Mershon, 469-398-7621
Brett Turner, 864-281-6976
Jason Landkamer, 469-398-7222
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA TEXAS
INDUSTRY KEYWORD: TRANSPORT AIR CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE OTHER CONSTRUCTION & PROPERTY
SOURCE: Fluor Corporation
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PUB: 06/11/2018 05:35 PM/DISC: 06/11/2018 05:35 PM