Iridium, as part of the Signature on the St. Lawrence (SSL) Group has successfully achieved Financial Close for the New Champlain Bridge Corridor Project, with an initial investment of CAN$ 3.4 billion
Through its Canadian subsidiaries ACS Infrastructure Canada (Iridium) and Dragados Canada with Hochtief PPP North America and Flatiron, ACS Group was named Preferred Proponent in April 2015 by the Federal Government of Canada to design, build, finance, operate and maintain the New Champlain Bridge Corridor Project. On June 19 the SSL Group closed the transaction to provide private financing to the project.
The private financing closed includes a CAN$ 577 million long-term fixed rate amortizing bond issuance and a CAN$ 111 million long-term fixed rate bullet bond issuance underwritten by HSBC Securities (Canada) Inc. and National Bank Financial Inc. The financing also includes a short-term revolving construction facility of CAN$ 1,144 million syndicated by a club of 8 international bank lenders (National Bank of Canada, The Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation, Caisse Centrale Desjardins du Québec, HSBC Bank Canada, Toronto-Dominion Bank and Bank of China). The equity will be contributed at the end of construction and is backed by letters of credit posted by the equity sponsors. The Government of CanadaÂ’s contribution will be made through a total of three payments triggered by the completion of designated milestones during the construction of the new infrastructure.
The scope of the New Champlain Bridge Corridor Project includes the construction of a new 3.4km long bridge over the St. Lawrence River, including a 517m cable-stayed bridge, as well as the approaching infrastructure and the reconfiguration of the federal portions of the adjacent existing highways. The new bridge is due for completion in December 2018, with the remaining work to be substantially finalized by 2019. The project includes a 30-year operation and maintenance term following the completion of the works.
The new bridge will replace the existing Champlain bridge, a strategic infrastructure for commuters in Montreal metropolitan area and for cross-border international trade.
ACS Infrastructure / Dragados success in the North American P3 market
The New Champlain Bridge Corridor Project adds to the most recent successes in North America, including the recent award of the Eglinton Crosstown Project in Ontario (awarded in June 2015), the Portsmouth Bypass Project in Ohio (financial close February 2015) and the SH-288 Toll Lanes project in Texas (awarded in February 2015) Â– and to ACSÂ’ large P3 asset portfolio in North America, worth over $18 billion in total. Projects also include the A-30 highway in Montreal (in operation since December 2012), the I-595 Express highway in Florida (in operation since March 2014), the South Fraser Perimeter Road in Vancouver (in operation since December 2013), the Right Hon. Herb Grey Parkway in Ontario, the North East section of EdmontonÂ’s Anthony Henday ring-road and OttawaÂ’s LRT Confederation Line.
ACS Group is ranked first among the list of World Top Transportation Developers by Public Works Financing Magazine and # 1 in the ranking of Top International Contractors by Engineering News Record.