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Government
transportation.gov

Investments

22

Portfolio Exits

1

Partners & Customers

10

About U.S. Department of Transportation

The U.S. Department of Transportation serves the United States by ensuring a fast, safe, efficient, accessible and convenient transportation system that meets vital national interests and enhances the quality of life of the American people, today and into the future.

Headquarters Location

1200 New Jersey Ave SE

Washington, DC, 20590,

United States

855-368-4200

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Latest U.S. Department of Transportation News

MARAD’s Title XI Changes: Good News for Offshore Wind?

Feb 12, 2024

© Maxim Khalansky / Adobe Stock The U.S. Department of Transportation's Maritime Administration (MARAD) in December issued a final rule updating its financial requirements for the Federal Ship Financing Program, commonly referred to as Title XI. While the move applies to the U.S. maritime industry as a whole, it is seen as especially helpful for players looking to serve the U.S. offshore wind sector. Designed to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards, Title XI provides for a full faith and credit guarantee by the U.S. government. The program essentially aims to encourage U.S. shipowners to obtain new vessels from U.S. shipyards cost effectively through long-term debt repayment guarantees. It can also be utilized by U.S. shipyards to help modernize their facilities for both vessel repair and new construction. Charlie Papavizas, partner and chair of the maritime practice at law firm Winston & Strawn, explained, “Title XI refers to the title with number in the Merchant Marine Act, 1936 whereby the U.S. government, as amended in 1972, offered to guarantee the private financing of vessels built in the United States meeting certain conditions. In 2019, MARAD converted the program to a government loan program with the Federal Financing Bank as the lender.” The repayment term and interest rates available under the program and generally better than those available from the commercial lending market. “The main advantages of government financing are a favorable interest rate, the potential to cover up to 87.5% of the vessel costs and a potentially long period of loan amortization extending to the life of the vessel,” Papavizas said. But there are also drawbacks. Papavizas said, “The main disadvantage of the program is the substantial application processing time. MARAD’s website indicates, for example, that ECO Edison, LLC submitted an application that was accepted by MARAD in September 2022 for a service operation vessel (SOV) that has been approved but has not yet closed.” As of early February, the status of ECO’s $90 million loan request is listed as "letter commitment issued; awaiting guarantee closing". Companies within the offshore wind sector that have applications completed and currently under review include Windea CTV ($104 million for 10 crew transfer vessels (CTV)), Great Lakes Dredge & Dock ($215,862,500 for a subsea rock installation vessel (SRIV)), and Offshore Wind Support, LLC [Edison Chouest] ($95,156,250 for an SOV). Crowley’s application is listed as submitted and under deficiency review ($146,475,743 for an SOV). Title XI applications have also been submitted for several other non-wind vessels and shipyard upgrade programs. Recent changes The recent final rule, which became effective 30 days after publication in the Federal Register (docket number MARAD-2023-0086), “establishes modern financial performance as well as initial and continuing creditworthiness criteria for Title XI loan guarantees”, MARAD said, noting that the rule will also provide applicants with more flexible repayments terms, aligning program regulations with the best practices of maritime industry lending and federal credit. Philip Lewis, director of research at business intelligence and consulting firm Intelatus Global Partners, said, "The amendments respond to concerns that previous terms acted as a barrier to some companies seeking to apply for Title XI support. In short, the tests that measure that the borrower has ‘a reasonable prospect’ of repaying the debt have been updated to align with other federal programs and general industry practice." Papavizas said the move addresses the issue of rigid financial qualification criteria. “In particular, pre-existing MARAD regulations require borrowers to have no more than a two to one long term debt to equity ratio,” he said. “MARAD determined that these criteria were not in line with criteria utilized in other federal financing programs and has replaced them with the requirement that a borrower ‘must demonstrate financial performance that supports a reasonable prospect of repayment taking into account foreseeable negative economic conditions’. Moreover, MARAD would not have had discretion to consider certain subordinated debt as equity whereas now it will have that ability.” By introducing greater flexibility to the regulations governing the Title XI program, MARAD said it will be able to adapt the terms of new loan guarantees according to the risk profiles of particular projects. MARAD believes the changes will help “attract a higher volume of high-quality applicants and mitigate risk to the U.S. government”. Offshore wind The Title XI program is of particular importance for the U.S. offshore wind industry. In June 2022, MARAD designated vessels used in construction, service and/or maintenance of offshore wind facilities as "vessels of national interest", giving these applications processing priority for Title XI support. “Designated vessels are supposed to receive loan processing priority,” Papavizas said. “Since Title XI depends on appropriations to fund MARAD’s loan reserves and those appropriations are limited, such priority can be meaningful.” While the Title XI update could be a boost for offshore wind vessel construction, at the end of the day, the market is still waiting for projects to move forward before ordering ships. “As a result of the amendments, there is hope that the conditions exist for additional domestically built offshore wind vessels to be committed,” Lewis said. “However, vessel owners are often waiting for project developers to make final investment decisions and offer owners mitigation for vessel redeployment risk.”

U.S. Department of Transportation Investments

22 Investments

U.S. Department of Transportation has made 22 investments. Their latest investment was in EVCS as part of their Grant - II on February 06, 2024.

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U.S. Department of Transportation Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

2/6/2024

Grant - II

EVCS

Yes

2

5/4/2023

Grant - VI

Florida Atlantic University

$2M

Yes

1

3/9/2023

Grant

DFW Airport

$35M

Yes

1

8/15/2022

Grant - II

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$99M

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10

8/12/2022

Grant

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$99M

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10

Date

2/6/2024

5/4/2023

3/9/2023

8/15/2022

8/12/2022

Round

Grant - II

Grant - VI

Grant

Grant - II

Grant

Company

EVCS

Florida Atlantic University

DFW Airport

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Amount

$2M

$35M

$99M

$99M

New?

Yes

Yes

Yes

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Co-Investors

Sources

2

1

1

10

10

U.S. Department of Transportation Portfolio Exits

1 Portfolio Exit

U.S. Department of Transportation has 1 portfolio exit. Their latest portfolio exit was Diversified Technical Systems on June 01, 2021.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

6/1/2021

Acquired

$99M

3

Date

6/1/2021

Exit

Acquired

Companies

Valuation

$99M

Acquirer

Sources

3

U.S. Department of Transportation Partners & Customers

10 Partners and customers

U.S. Department of Transportation has 10 strategic partners and customers. U.S. Department of Transportation recently partnered with Goldman Edwards on November 11, 2023.

Date

Type

Business Partner

Country

News Snippet

Sources

11/30/2023

Vendor

Goldman Edwards Awarded Prime Contract to Support the Department of Transportation with Presidential Transition Initiatives

WASHINGTON , Nov. 30 , 2023 / PRNewswire / -- Goldman Edwards , Inc. was awarded a Sole Source Contract to support the Department Presidential Transition Initiatives .

1

10/6/2023

Partner

United States

Passengers in wheelchairs can't use most airplane washrooms. That could change

With this in mind , the U.S. Department of Transportation also announced an agreement with United Airlines under which the airline will take industry-leading actions to help people locate flights where their wheelchairs can be safely stored and transported .

2

4/12/2023

Vendor

United States

ATN Selected By U.S. Department Of Transportation – Anaheim Transportation Network USDOT to Provide Technical Assistance to Support Transportation Planning for Anaheim Neighborhoods. ANAHEIM TRANSPORTATION NETWORK SELECTED BY U.S. DEPARTMENT OF TRANSPORTATION FOR THRIVING COMMUNITIES PROGRAM.

ANAHEIM , Calif. -LRB- April 12 , 2023 -RRB- -- A transportation enhancement project being led by the Anaheim Transportation Network has been selected by the U.S. Department of Transportation -LRB- USDOT -RRB- for inclusion the agency 's Thriving Communities program .

1

4/3/2023

Vendor

United States

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10

3/8/2023

Vendor

United States

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10

Date

11/30/2023

10/6/2023

4/12/2023

4/3/2023

3/8/2023

Type

Vendor

Partner

Vendor

Vendor

Vendor

Business Partner

Country

United States

United States

United States

United States

News Snippet

Goldman Edwards Awarded Prime Contract to Support the Department of Transportation with Presidential Transition Initiatives

WASHINGTON , Nov. 30 , 2023 / PRNewswire / -- Goldman Edwards , Inc. was awarded a Sole Source Contract to support the Department Presidential Transition Initiatives .

Passengers in wheelchairs can't use most airplane washrooms. That could change

With this in mind , the U.S. Department of Transportation also announced an agreement with United Airlines under which the airline will take industry-leading actions to help people locate flights where their wheelchairs can be safely stored and transported .

ATN Selected By U.S. Department Of Transportation – Anaheim Transportation Network USDOT to Provide Technical Assistance to Support Transportation Planning for Anaheim Neighborhoods. ANAHEIM TRANSPORTATION NETWORK SELECTED BY U.S. DEPARTMENT OF TRANSPORTATION FOR THRIVING COMMUNITIES PROGRAM.

ANAHEIM , Calif. -LRB- April 12 , 2023 -RRB- -- A transportation enhancement project being led by the Anaheim Transportation Network has been selected by the U.S. Department of Transportation -LRB- USDOT -RRB- for inclusion the agency 's Thriving Communities program .

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Sources

1

2

1

10

10

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