Canadian financial services firm Sun Life Financial has advanced its second of two long-term senior loans totaling $160 million to Enwave Energy Corp, a Toronto-based provider of cooling and heating services, and a portfolio company of Brookfield Asset Management. The $75 million second tranche of the facility was provided in July. This funding follows the first tranche of $85 million which was advanced in 2010. Brookfield bought Enwave from Borealis Infrastructure, the infrastructure investment arm of OMERS, and the City of Toronto for $480 million in October 2012.
Sun Life provides significant financing to an innovative Canadian business
TORONTO, Sept. 10, 2013 /CNW/ – Sun Life Financial, Canada’s largest private fixed income lender, has advanced its second of two long term senior loans totaling $160 million to Enwave Energy Corporation, the successful district energy services company based in Toronto.
“We are pleased to provide additional financing to Enwave as it continues building its business providing reliable, cost-effective, and environmentally sustainable heating and cooling to major buildings in downtown Toronto,” said Tom Robinson, Senior Managing Director, Head of North American Private Fixed Income. “This innovative term loan facility is a strong example of the highly customized financing solutions we provide through our private fixed income investments group.”
The $75 million second tranche of the senior loan facility was provided at the end of July and it matures in 40 years. This funding follows the first tranche of $85 million which was advanced in 2010 and matures in 2045. Sun Life Assurance Company of Canada (“Sun Life”) is the lead lender and administrative agent, while third-party funds managed by Sun Life have invested in a portion of the second tranche.
Sun Life is a major institutional investor, with $105 billion in general account assets as of June 30, 2013. It is also the largest private fixed income originator in Canada and among the largest in North America, currently managing a diversified private debt portfolio of approximately $20 billion. This portfolio includes issuers from a wide variety of industries, and it consists of various transaction types including corporate loans, private securitizations, P3-infrastructure debt and power project loans. To date, in 2013, Sun Life has provided over $2.8 billion of senior debt to borrowers located across Canada and the U.S., and to a growing number in Australia and the U.K.
“We have a long history of structuring unique and complex transactions that meet the needs of our borrowers and provide Sun Life with attractive risk-adjusted returns,” said Steve Peacher, Executive Vice-President and Chief Investment Officer. “We are focused on growing our private fixed income investment portfolio in pursuit of the company’s 2015 financial objectives, and as part of this we are expanding our portfolio’s geographic reach.”
Enwave provides steam-based heating, and uses cold water from Lake Ontario to provide cooling, to more than 150 buildings in downtown Toronto. Its customers include major commercial office buildings, government facilities, hospitals, educational institutions and data centres. Enwave intends to spend up to $100 million over the next two years to expand its cooling system and connect new customers. Beyond Sun Life’s excellent and long standing relationship with Brookfield Asset Management, which manages a fund that owns Enwave, Sun Life was attracted by Enwave’s strong credit fundamentals including its long-term contracts with a diverse customer base, limited competition in its highly specialized business, and good growth potential.
About Sun Life Financial
Sun Life Assurance Company of Canada is a member of the Sun Life Financial group of companies. Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Sun Life Financial and its partners have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30, 2013, the Sun Life Financial group of companies had total assets under management of $591 billion. For more information please visit www.sunlife.com
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
About Enwave Energy Corporation
Enwave Energy Corporation is a leading provider of innovative, sustainable energy services. With district energy operations in Toronto and Windsor, Ontario, the company provides environmentally friendly heating and cooling to many of the most prestigious buildings and landmarks in both cities. In Toronto, 40 km of underground pipes interconnect over 150 buildings to three steam plants and to the company’s world renowned Deep Lake Water Cooling system. On October 31, 2012, Enwave was purchased by a fund that is managed by Brookfield Asset Management Inc., a global alternative asset manager with over $175 billion in assets under management.
Note to Editors: All figures in Canadian dollars.
SOURCE Sun Life Financial Inc.
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