FTG Fraser Transportation Group Partnership (FTG), a consortium of ACS Infrastructure Canada, Star America, and Ledcor, will refinance the South Fraser Perimeter Road (SFPR) project in the Metro Vancouver region, Canada.
Moody's Investors Service has assigned an A3 rating to the FGT's proposed CAD$229 million (US$176.2 million) in the form of a 18.25 years single tranche senior secured bond maturing in December 2033, 6 months prior to the expiration of the concession agreement in June 2034. According to the firm the outlook in stable. The bonds will be a private placement bond offered both in Canada and in the United States.
The bonds will be used to refinance the existing project financing, which was closed in 2010 to develop the road. Specifically proceeds of the issuance will be used to pay: an existing credit facility, certain transaction costs, distributions to the sponsors, pre-fund required reserves and make other required payments including swap breakage costs.
The capital costs associated with the DBFO portion of the project was CAD$666 million (US$512.4 million). The project included a funding contribution of $365 million from the Government of Canada. The financial closure took place on the 1st of August 2010 with six banks, Santander, Société Générale, Unicredit,ING, Crédit Agricole and Caixanova. The total amount of contributed private funds was CAD$200 million, including a debt period of twenty years and capital contributions for the shareholders of some CAD$31 million. The rest of the project funds came from payments from federal and provincial governments.
On July 14th 2010, a performance-based, fixed price concession agreement was closed with FTG to design, build, finance and operate the road for a term that spans the construction period, plus a 20-year operating period.
The four-year design and construction process included a new 34 kilometer, four-lane highway on the south side of the Fraser River. With connections to Highway 99, Highway 91, the Trans-Canada Highway, the Pattullo Bridge and the Golden Ears Bridge. It's expected to remove heavy truck traffic from local roads, reduce travel times through the region, and improve access to major trade gateways and industrial areas.