Metlife leads refinancing for ACS's I-595

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Metlife leads refinancing for ACS's I-595

MetLife and several of its private placement clients have invested US$213 million in senior notes for the refinancing of the I-595 Express Corridor Improvements Project in Miami, Florida (USA).

With more than a quarter of the US$827 million total offering, MetLife and its clients are the lead investors in the refinancing that closed last month. InfraPPP already informed about this transaction in late October.

According to sources, the refinancing included a total of 14 investors.

The senior notes priced at 155 bps over a seven-year Treasury bond and had an interest rate of 3.31 percent. The notes have an average life of about seven years and reach final maturity in 2031. The capital will be used to retire a portion of the project's outstanding bank debt and repay other loans.

The final bond was oversubscribed, and a total of 15 private investors, including MetLife and its clients, participated.

Since 19 October 2011, Teachers Insurance and Annuity Association of America owns 50 % of the asset after buying the interest from ACS, the original developer of the asset. The deal valued the company at US$588.36 million.

Scott Inglis, managing director and head of private placements for MetLife Investment Management, stated:

"This was a very competitive process because of the attractiveness of the project. MetLife's relationships and strong market position enabled us to successfully secure a solid allocation for our private placement clients and our portfolio."

The I-595 Corridor Roadway Improvements project involved the reconstruction and widening of the I-595 mainline and all associated improvements to frontage roads and ramps from the I-75/Sawgrass Expressway interchange to the I-595/I-95 interchange, for a total project length of approximately 10.5 miles.

FDOT signed a PPP agreement with I-595 Express LLC 0n March 3rd, 2009. I-595 Express LLC, which was owned by ACS Infrastructure, to serve as the concessionaire to design, build, finance, operate and maintain (DBFOM) the project for a long-term commitment of 35 years. The TIFIA loan agreement was executed on March 2, 2009 and financial close reached on March 3, 2009.

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