Ontario Infrastructure and Lands Corporation closes financing on $1.2 billion Highway 407 East Phase 2 Project

On March 10, 2015, Ontario Infrastructure and Lands Corporation and Blackbird Infrastructure 407 General Partnership (a consortium led by Holcim (Canada) Inc. and Cintra Infraestructureas Internacional, S.L.) entered into a Project Agreement for the design, construction, financing, maintenance and major rehabilitation of a 22.1 kilometre easterly extension of the Highway 407 from Harmony Road in the City of Oshawa to Highway 35/115 in the Municipality of Clarington over a period of 30 years (the “407 Phase 2 Project“). The project, valued at $1.2 billion, is expected to, among other things, provide a new transportation corridor to address transportation capacity deficiencies, offer relief to congestion on local roads traffic and meet infrastructure needs to address continued growth in the Durham Region and eastern Greater Toronto Area.

Financing for the 407 Phase 2 Project is comprised of credit facilities provided by Royal Bank of Canada, The Toronto-Dominion Bank, Mizhuo Bank, Ltd. and Sumitomo Mitsui Banking Corporation, as lenders and hedge providers (collectively, the “Lenders“), with Royal Bank of Canada acting as administrative agent, and senior secured bonds issued by Blackbird Infrastructure 407 General Partnership, which bonds were underwritten by RBC Dominion Securities Inc. and TD Securities Inc. (the “Underwriters“), with Computershare Trust Company of Canada acting as indenture trustee and collateral trustee.

The Lenders and Underwriters were represented by a McMillan team, led by Tim Murphy and which included Candy Saga (Public-Private Partnerships), Julie Han, Ahsan Mirza, Michelle Boodhoo, Don Waters, Rob Scavone, Shahen Mirakian, Stephen Eddy, Patrice Beaudin, Paula Bokser, Frederique Gay, Megan Singleton (Financial Services), Margaret McNee, Adam Kline, Daniel Dex (Capital Markets), Herbert Ono (Corporate Finance/Securities Law), Carl Irvine (Tax), and Jeffrey Nagashima.