SNC-Lavalin Group Inc.: Highway 407 Completes Refinancing
of $2.3 Billion of Bank Debt
MARCH 10, 2000
MONTREAL, QUEBEC--SNC-Lavalin reports that 407 International, the
company that owns Highway 407, in which SNC-Lavalin has a 27 per
cent share, has reached a major milestone with the completion of
the refinancing of the senior bridge loan of $2.3 billion with the
issue of its latest series of senior bonds.
407 International has agreed to issue $430 million of 6.90 per
cent Senior Bonds at a yield of 6.661 per cent, Series 00-A3, due
December 17, 2007 exchangeable for 6.90 per cent Senior Bonds at a
yield of 6.789 per cent, Series 00-A4, due December 17, 2030 to an
underwriting group consisting of BMO Nesbitt Burns Inc., RBC
Dominion Securities Inc., Merrill Lynch Canada Inc., Salomon Smith
Barney Canada Inc., TD Securities Inc., CIBC World Markets Inc.,
National Bank Financial Inc., Scotia Capital Inc. and Casgrain &
Company Limited.
Net proceeds of approximately $396.2 million, after paying the
costs of issuance and funding the Debt Service Reserve Account,
will be used primarily to repay the remaining outstanding
indebtedness under the Senior Bank Bridge taken out to acquire the
shares of 407 ETR Concession Company Limited from the Government
of Ontario on May 5, 1999.
"This represents a significant milestone for the Highway 407
investment," said Jacques Lamarre, President and Chief Executive
Officer of SNC-Lavalin. "With the senior program completed, the
company and sponsors can now contemplate an earlier refinancing of
the junior bank bridge and subordinated debt, and further optimize
the costs of capital. Interest costs are, by far, the most
significant costs the highway supports, this achievement improves
upon a key assumption of the sponsors' original business plan.
The investment community's confidence is a good reflection on the
value of 407."
Highway 407 is the world's first all-electronic open access toll
highway which runs 69 kilometres east-west, just north of Toronto.
It is owned by a consortium comprised of Spanish company Cintra
Concesiones de Infraestructuras de Transporte, SNC-Lavalin, and
Capital d'Amerique CDPQ, a subsidiary of the Caisse de depot et
placement du Quebec.
SNC-Lavalin Group is one of the leading engineering and
construction firms in the world, and a key player in the ownership
and management of infrastructure. The group and its companies
have offices across Canada and in 30 other countries, and are
currently working in some 100 countries. The company is listed on
the Toronto Stock Exchange (symbol: SNC). |
