407 International Inc, the operator of Ontario toll highway Highway 407, has agreed to issue $250 million in senior notes through its $1.8 billion medium-term notes program. The deal will be processed by a syndicate led by RBC Dominion Securities Inc and BMO Nesbitt Burns Inc. The proceeds will be used to fund a series reserve account, repay debt and other priorities. 407 International is owned by Ferrovial SA, Canada Pension Plan Investment Board (CPPIB) and SNC-Lavalin. CPPIB struck a deal in 2010 to acquire its 40 percent interest.
$250 Million of Medium-Term Notes Issued by 407 International Inc.
TORONTO, March 21, 2017 /CNW/ – 407 International Inc. (the “Company”) announced today that it has agreed to issue $250 million aggregate principal amount of 3.43% Senior Notes, Series 17-A1, due June 1, 2033 through its $1.8 billion Medium-Term Notes program and pursuant to a base shelf prospectus dated December 13, 2016, 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., Casgrain & Company Limited, National Bank Financial Inc., Scotia Capital Inc. and TD Securities Inc. The distribution of the Senior Notes is scheduled to close on March 24, 2017.
Net proceeds will be used: (i) to fund a series reserve account; (ii) to repay principal amounts owing by the Company to certain Canadian chartered banks under certain of the Company’s senior secured revolving credit facilities; and (iii) for general corporate purposes.
407 International Inc. is owned by Cintra Global Holding Limited, 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.
For further information: Investors: Geoffrey Liang, Chief Financial Officer, Tel: 905-265-4070; Media: Kevin Sack, Vice President, Marketing, Communications and Government Relations, Tel: 905-264-5374
Photo courtesy of Ferrovial SA