Oklahoma Turnpike Authority eyes $1.5 billion of bonds for capital program

The Oklahoma Turnpike Authority is seeking to sell $1.5 billion of revenue bonds for what would be its third debt issuance for an $8.2 billion expansion and improvement program.

OTA's board this week greenlit the new money bonds, along with a refunding, subject to approval by the Oklahoma Council of Bond Oversight, which meets June 25.

The 15-year Advancing and Connecting Communities and Economies Safely Statewide program, or ACCESS Oklahoma, announced in February 2022 will widen existing toll roads and build new ones at a projected cost that has risen to $8.2 billion from an initial $5 billion.

OTA sold $500 million of second senior revenue bonds in 2023, followed by a $1.11 billion deal in January 2025.

The turnpike authority is evaluating when to price the upcoming bonds, which could be sold in one or more deals, pending approval by the bond oversight council, according to a spokesperson. The refunding would involve bonds sold in 2017 and 2018, along with a tender offer for 2020 Series B bonds.

The debt would be sold through an underwriting team led by Jefferies with co-managers RBC Capital Markets, Morgan Stanley (MS), Stifel, Raymond James, Loop Capital Markets, BOK Financial Securities, Truist, and Siebert Williams & Shank. Hilltop Securities is the financial advisor and Hawkins, Delafield & Wood is bond counsel.

Controversy over the ACCESS program has led to litigation and legislation.

Property owners in the path of new toll roads unsuccessfully sued to stop the program, with lawsuits alleging open meeting violations by OTA's board and challenging the issuance of bonds for ACCESS projects.

Legislation in recent years sought to reform the agency's practices, including capping its outstanding debt and requiring legislative approval for toll hikes. As in previous sessions of the Republican-controlled legislature, bills targeting OTA in the session that ended in May failed to advance.

An investigative state audit of OTA ordered by Oklahoma Attorney General Gentner Drummond and released in March uncovered no instances of "egregious wrongdoing or significant statutory non-compliance," while raising concern about its contracting practices.