TIDMBBGI
RNS Number : 6756J
BBGI SICAV S.A.
30 June 2017
30 June 2017
BBGI SICAV S.A.
Agreement to invest in five existing PPP projects and gain
access to a robust pipeline of future PPP projects in Canada
BBGI SICAV S.A. (LSE ticker: BBGI) is delighted to announce that
it has signed a strategic agreement with a subsidiary of
SNC-Lavalin Group Inc. (TSX ticker: SNC) ("SNC-Lavalin") to invest
in an investment vehicle ("Partnership") which will hold
substantial equity interests in five PPP projects in Canada. All
assets are operational and classified as availability-based under
the investment policy of the Company.
Furthermore, as part of the transaction and through the
Partnership, BBGI will benefit from a vend-in (pipeline) agreement
that provides the Partnership a right of first offer with respect
to the potential future acquisition, of select interests in
SNC-Lavalin's robust pipeline of Canadian availability-based PPP
projects currently under construction, which is expected to create
additional investment opportunities once the assets become
operational.
SNC-Lavalin, with a market capitalisation of approximately CA$8
billion (approximately GBP4.75 billion), is the largest engineering
company in Canada, one of the leading engineering and construction
groups in the world and a major player in the ownership of
infrastructure. Founded in 1911, it is a leader in the PPP market
in Canada and has over the years built up an extensive portfolio of
PPP assets.
In addition, BBGI is pleased to announce that it has increased
the total commitment amount available under its existing credit
facility with ING Bank and KfW IPEX-Bank from GBP110 million to
GBP180 million, which will leave approximately GBP155 million
available to be drawn. The margin on the GBP70 million commitment
increase will be unchanged at 185 bps.
To facilitate the holding of the five project interests and such
future acquisitions, a Partnership has been established in which
BBGI and SNC-Lavalin will hold 80 per cent. and 20 per cent.
partnership interests, respectively, while a subsidiary of
SNC-Lavalin will act as the Partnership GP.
At closing of the initial seed assets, the Partnership will
acquire holdings in the following operational assets currently held
by SNC-Lavalin:
- William R. Bennett Bridge (Kelowna, B.C.);
- Southeast Stoney Trail (Calgary, Alberta);
- Restigouche Hospital Centre (Campbellton, New Brunswick); and
- Canada Line (Vancouver, B.C.)
The acquisition of the interests in the four operational seed
assets described above is expected to close in the coming months.
As a second stage, and subject to a number of project-specific
conditions precedent being satisfied, it is expected that the
Partnership will acquire a holding in the McGill University Health
Centre ("MUHC") currently held by SNC-Lavalin.
The agreed total cash consideration payable by the Company for
the five initial project interests is expected to be approximately
CA$208 million, which will be funded from the Company's existing
cash resources and drawings under its extended credit facility.
Duncan Ball, Co-CEO said:
"We are delighted to enter into this partnership with
SNC-Lavalin that will give us the opportunity to invest alongside
SNC-Lavalin in five high quality PPP projects and future potential
to invest in its highly desirable pipeline of development-stage PPP
projects. SNC-Lavalin has been a leader in the PPP market in Canada
for many years and we are excited to be able to invest in the
projects it develops."
Frank Schramm, Co-CEO added:
"This transaction is being made on accretive terms. All of the
investments in our portfolio remain low risk, availability-based
projects and this transaction follows our purist approach to
investing in PPP/PFI projects."
Notes for Editors
The William R. Bennett Bridge is a 2 km corridor that straddles
Okanagan Lake to connect two communities, Kelowna and West Kelowna,
in the interior of British Columbia. The project became operational
in 2008 and the concession runs until 2035. Availability payments
are received from the Province of BC (AAA rated by S&P).
SNC-Lavalin owns 100% of the project equity.
Canada Line is a 19.5 km automated rail-based rapid transit
service connecting downtown Vancouver with Richmond and the
Vancouver International Airport. The project became operational in
2009 and the concession runs until 2040. Availability payments are
received from Translink (Aa2 rated by Moody's). SNC-Lavalin owns
33.3% of the project equity.
Southeast Stoney Trail is a 25 km highway that is part of the
Calgary Ring Road network. The project became operational in 2013
and the concession runs until 2043. Availability payments are
received from the Province of Alberta (AA+ rated by S&P).
SNC-Lavalin owns 50% of the project equity.
Restigouche Hospital Centre is a 33,500 m(2) hospital with 140
beds located in Campbellton, New Brunswick. The project became
operational in 2013 and the concession runs until 2044.
Availability payments are received from the Province of New
Brunswick (A+ rated by S&P). SNC-Lavalin owns 100% of the
project equity.
McGill University Health Centre ("MUHC") is a 214,000 m(2)
hospital with 500 private patient rooms located in Montreal,
Quebec. The project became operational in 2014 and the concession
runs until 2044. Availability payments are received from MUHC,
which is rated A (high) by DBRS. SNC-Lavalin owns 60% of the
project equity.
BBGI currently owns a portfolio of 39 infrastructure assets.
These projects are PPP assets and are supported by contracted,
public sector-backed revenue streams, with inflation-protection
characteristics.
Further information about BBGI is available on its website at
www.bb-gi.com.
Any reference to the Company or BBGI refers also to its
subsidiaries (where applicable).
For further information, please contact:
BBGI Management Team +352 2634791
Duncan Ball
Frank Schramm
This information is provided by RNS
The company news service from the London Stock Exchange
END
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