407 International Inc, which is engaged in the operation, maintenance and management of Highway 407 in the greater Toronto area, this week completed an offering of $200 million senior secured 4.68% medium-term notes. Net proceeds were approximately $186.5 million. Forty percent of the company is owned by Canada Pension Plan Investment Board. Torys LLP represented 407 International in the transaction.
$200 Million of Medium Term Notes Issued by 407 International Inc.
TORONTO, Oct. 2, 2013 /CNW/ – 407 International Inc. announced today that it has agreed to issue $200 million aggregate principal amount of 4.68% Senior Notes, Series 13-A1, due October 7, 2053, through its $1.2 billion Medium-Term Notes program and pursuant to a base shelf prospectus dated August 3, 2012, in an agency transaction with a syndicate led by RBC Dominion Securities Inc. and BMO Nesbitt Burns Inc. The syndicate also includes CIBC World Markets Inc., National Bank Financial Inc., Casgrain & Company Limited, Scotia Capital Inc. and TD Securities Inc. The distribution of the Senior Notes is scheduled to close on October 7, 2013.
Aggregate net proceeds of approximately $186.5 million, after paying the costs of issuance and funding of the series reserve account, will be used (i) to repay $118.1 million aggregate principal amount owing by the Company to certain Canadian chartered banks under certain of the Company’s senior secured revolving credit facilities, and (ii) for general corporate purposes.
407 International Inc. is owned by Cintra Infraestructuras S.A., a wholly owned subsidiary of Ferrovial S. A. (43.23%), by indirectly owned subsidiaries of Canada Pension Plan Investment Board (total 40%), and by SNC-Lavalin (16.77%).
News releases are available at www.407etr.com.
SOURCE 407 International Inc.
For further information:
Chief Financial Officer
Communications and Government Relations
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