Montréal-based cement products company McInnis Cement has closed a $500 million refinancing of its private capital.
The deal includes $300 million provided by an increase to McInnis Cement’s senior loan from a syndicate of eleven Canadian and international banks.
It also includes a $200 million subordinated loan from Caisse de dépôt et placement du Québec (CDPQ) and Beaudier, an investment arm of the Beaudoin family, the company’s main shareholders.
The proceeds will be used to support McInnis Cement’s growth and repay a bridge loan provided by BlackRock in 2016.
CDPQ took a controlling stake in the company in 2016 when a cement project in Québec’s Gaspé peninsula experienced cost overruns.
McInnis Cement Closes a Refinancing to Support its Growth and Expansion
Increase in the senior loan of a syndicate formed by eleven Canadian and international banks
Capital injection in the form of subordinated loan from its main shareholders
Development of the distribution network to meet the increased demand
MONTRÉAL, July 17, 2019 /CNW Telbec/ – Building on the significant achievements in the last two years in the context of growing customer demand, McInnis Cement confirms the closing of a $500-million private capital refinancing of private capital. This refinancing will allow the company to support its rapid growth, better serve its customers, align its capital structure with reduced operational and financial risk resulting from its good performance, which will lead to significant savings. Of this amount, $300 million is provided by an increase McInnis Cement’s senior loan from a syndicate of eleven Canadian and international banks and a $200-million injection in the form of a loan by the Caisse de dépôt et placement du Québec (la Caisse) and Beaudier Inc. This refinancing also makes it possible to repay the bridge loan granted by BlackRock in 2016.
Investissement Québec has made certain adjustments to its debt structure while maintaining a priority ranking in the capital structure of a project whose operational and financial risk has significantly decreased. As part of this refinancing, the Québec government does not reinvest any additional amount.
“In seeing our customers’ satisfaction with our product offering, we fully appreciate the tremendous work done by our teams. Today, we offer high quality cement in the markets, along with exceptional customer service and efficient distribution facilities. This refinancing allows us to further support the growth of our business”, said President and Chief Executive Officer, Jean Moreau.
Over the past few months, McInnis Cement has planned and undertaken significant work in several of its facilities to add storage and loading capacity. This work has been made necessary by the increased customer demand for its products.
The Bronx Terminal has doubled its loading capacity for customers. A second truck loading lane is now fully operational.
A new 40,000 metric tonne warehouse is currently under construction at the Providence Terminal, bringing the total storage capacity to 75,000 metric tonnes. A new truck loading lane will also be added and commissioned in time for the 2020 spring construction season.
Two new cement silos will be built at the Port-Daniel–Gascons cement plant. Nearly 200 workers will be mobilized on the site during the peak construction period of the two silos, during fall 2019.
With NOVA Marine Carriers, McInnis recently confirmed the charter of the NACC New Yorker, a 24,000 metric tonne capacity self-unloading vessel, that will join the NACC Quebec (14,000 metric tonnes), the Cielo di Gaspesie (35,000 metric tonnes) and the Resolute unloading barge.
In addition to improving cement distribution capacity for McInnis customers, the refinancing paves the way to new markets.
McInnis anticipates the upcoming development of satellite terminals in the northeastern United States, as well as adding more infrastructure to its distribution network, distributing cement additives in different markets.
The plant’s engineering team began planning a future rail yard to be timed in conjunction with the reopening of the railway to Port-Daniel–Gascons. Directly loading of the cars at the cement plant will make it possible to prospect new territories and the plant will eliminate 160,000 tonnes of cement annually from the roads, i.e. approximately 8,000 truck trips.
“These investments will better position McInnis Cement to meet the increased demand from our customers. With our partners and investors’ support, we now have all the tools to continue our momentum,” concluded Mr. Moreau.
About McInnis Cement – The New Cement Company
McInnis Cement is a privately-held company with corporate headquarters in Quebec, Canada, with its United States headquarters in Stamford, Connecticut. The company’s plant in Port-Daniel–Gascons, Canada is the first new plant to serve Eastern Canada as well as the U.S. Eastern seaboard and Great Lakes region in more than 50 years. McInnis Cement has constructed a deep-water marine terminal, adjacent to the plant, and operates its own distribution network consisting of terminals strategically located in the U.S. and Canada. This allows products to be shipped quickly and efficiently to markets along the East Coast and the entire perimeter of the Atlantic Ocean.
As the newest entrant in the North American cement market, the company’s goal is to supply its customers with superior-quality products that are consistently produced and reliably distributed, based on sustainable development principles. The use of advanced technology enables the McInnis Cement plant to meet, if not exceed, the most stringent environmental standards, making its ecological footprint one of the smallest in the cement industry. More information is available at mcinniscement.com/en.
For further information: Press Contacts: Maryse Tremblay, Director of Communications, McInnis Cement, 418.391.7525, email@example.com