Indiana Toll Road (B): Will Winner’s Curse Strike Again?

Published 27 May 2016
Reference 5828
Region North America
Length 34 page(s)
Language English

In September 2014, the Indiana Toll Road (ITR) in the US Mid-west, privatized as a 75-year concession at an impressive price of US$3.8 billion only nine years earlier, filed for Chapter 11 bankruptcy , having chalked up US$6.3 billion of debt. In the subsequent sell-off the ITR managed to attract an even bigger bid than before - of US$5.72 billion.

Teaching objectives

The valuation of infrastructure assets; determining the right discount rate; pros and cons of public-private partnerships; the "winner's curse".

  • Toll road
  • Infrastructure
  • Public-Private Partnership (PPP)
  • Project finance
  • Privatization
  • Step-up swap
  • Inner's curse
  • Q31516
  • Corporate Governance
  • Auditing, Risk Control and Performance
  • Q31516