RBS gives Ontario Teachers credit facility for terminals
The Royal Bank of Scotland has launched a credit facility to finance the Ontario Teachers' Pension Plan's acquisition of four North American container terminals from Hong Kong-based Orient Overseas International Ltd.
The $2.35 billion transaction involved the Deltaport and Vanterm terminals in the Port of Vancouver in Canada and the Global Terminal and New York Container Terminal in the Port of New York and New Jersey, with the latter still awaiting regulatory approval.
RBS Securities Inc. is serving as administrative agent, co-lead arranger and co-book runner for the up to $1.88 billion senior secured credit facility, with the remainder financed with equity. RBC Capital Markets served as co-lead arranger and co-book runner.
Largely used to support the acquisition, the credit facility was structured as a hybrid between leveraged financing and traditional project financing, relatively unusual in the North American market, RBS said.
The facility also provides the Canadian pension plan with financing for capital expenditures and working capital to support its operation of the terminal assets.
'Strong container volume growth is driving investor interest in large-scale acquisitions of North American terminal facilities,' said David Nadelman, RBS's managing director and head of infrastructure syndications.
Jeff Stuart, managing director and of head of loan markets syndicate, North America for RBS, added: 'With the imbalance of supply and demand in the North American container market expected to continue, we anticipate that marine container terminals will rise in prominence as an asset class in this market.
'RBS intends to leverage its deep experience and expertise in leading port financings globally to facilitate future acquisitions in the U.S. and Canada,' Stuart said.
RBS gives Ontario Teachers credit facility for terminals
