IFM Investors completes acquisition of Indiana toll road

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IFM Investors completes acquisition of Indiana toll road

IFM Global Infrastructure Fund (IFM Investors) has completed the acquisition of 100 percent of the equity in the Indiana Toll Road Concession Company, LLC (ITRCC), which operates the Indiana Toll Road.

The Indiana Toll Road is a 157-mile, limited access, divided highway spanning northern Indiana from its border with Ohio to the Illinois state line near Chicago. The ITRCC is required to operate the toll road under a lease agreement that was signed in 2006, and has the exclusive right to collect toll revenues through the term of the agreement, which has a remaining life of 66 years.

The final purchase price for the ITRCC was US$5.725 billion, consistent with the purchase price and transaction structure outlined when the planned acquisition was announced.  The transaction is being financed using what IFM Investors views as a prudent capital structure that includes debt with maturities as long as forty years.

The investment becomes the thirtieth infrastructure asset in IFM Investors' current portfolio. It is IFM Investors' second investment in North American toll road infrastructure in 2015, and the fourth toll road in IFM's infrastructure portfolios.

Julio Garcia, Head of Infrastructure - North America at IFM Investors, stated:

"IFM Investors' acquisition of the Indiana Toll Road Concession Company is consistent with our stated approach to expanding our North American portfolio of assets. We believe the Indiana Toll Road is a terrific and complementary addition to our existing portfolio of toll road and other infrastructure investments.""Under our stewardship of this vital asset to the region, the Indiana Toll Road will soon undergo a series of improvements designed to enhance the customer experience."

In November 2014 the reorganization plan of the ITR Concession Company was approved by a federal bankruptcy judge in Chicago. ITR Concession previously declared bankruptcy in October 2014 on debt of more than $6 billion.

The state of Indiana leased the Indiana Toll Road to Spain's Cintra and Australia's Macquarie Group Ltd. for US$3.8 billion in 2006. Macquarie Infrastructure Partners owned 25% of the project, Macquarie Atlas Roads controled 25% and Cintra, the road's operator, held 50%.

The Indiana Toll Road's operating history demonstrates a long-standing linkage to economic growth. Operational since 1956, the toll road is a major freight corridor serving a large, mature, and industrially-developed regional economy. The road is the only multi-lane, non-stop route between Chicago and the Ohio Turnpike, and as such is a critical component of the Midwest and Northeast transportation and logistics networks.

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