Meridiam Opens New Markets: Successfully Completes Spain's First Long Term Debt Capital Market-Financed Public Private Partnership Without Any Debt Enhancement

PARIS and MADRID, May 28, 2015 /PRNewswire/ -- Meridiam, a leading global investor and asset manager specializing in public and community infrastructure, announced today that it has successfully completed the refinancing of the A66 Benavente-Zamora road availability-based PPP in Spain with three leading European institutional investors using the debt capital markets without the assistance of any credit enhancement; a first in the Spanish market.

Meridiam, Acciona and Cintra successfully priced on May 12^th 2015 the €184.5 million ($205 million), 27-year bond despite last week's market volatility at a 3.169% coupon, with settlement scheduled for 27^th May 2015 in order to comply with all administrative prepayment constraints from existing creditors.

The use of the new alternative fixed income market in Spain (MARF) for financing public infrastructures on this landmark transaction with the Ministry of Development and Public Works confirms the good initiative of the Spanish Authorities designing this market to diversify sources of finance on tailor-made financings.

The greenfield 49km section of road, initially planned for completion mid-2015, opened to the public on May 12^th, two months ahead of schedule. The 49 km A66 section completes the North to South axis "Ruta de la Plata" from Seville to Gijon in the sole section that was not previously operational under a 2x2 highway standard.

The bonds will list on a Spanish multilateral trading platform. The issuance priced at par with a semi-annual coupon and the maturity is 31 December 2041. The Project Company and issuer is Sociedad Concesionaria Autovia de la Plata and the shareholdings are Meridiam (50%), Cintra (25%) and Acciona (25%).  The 30-year concession's grantor is Spain's Ministry of Development through the Roads Directorate General. The original €160.5 million senior debt facility from commercial banks and the European Investment Bank ("EIB") closed on 31^st July 2013, when Spain's economy was still in recession following the 2008 financial crisis. BBVA, Santander and Instituto de Credito Oficial provided €80.5 million while EIB provided €80m of 21-year debt.

Meridiam has been a leader in the development of the debt capital markets for Public Private Partnerships (PPP), starting to work on this alternative source of financing in 2010. Meridiam companies have placed more than €2.5bn in project bonds with long term institutional investors in the US, UK and EU infrastructure over the past two years and they are currently working on other debt placements for more than €1bn. The firm's track record includes successful projects in France (L2 Rocade – Marseille), Slovakia (R1) and the United Kingdom (University Hertfordshire and M8 Scottish roads).

The A66 PPP created more than 20 new direct long term jobs in Zamora from the project's outset. The new road will alleviate heavy vehicle traffic in the urban centres of the rural communities that the existing national route was crossing. The security standards of the infrastructure respond to the highest requirements existing in European legislation. This project also marked the first use of the very recently implemented EU road security requirements. The infrastructure design was subject to the security focus of independent and certified audits to guarantee the satisfaction of EU highway security standards. 

"This is Spain's first debt capital market financed P3 and is also Meridiam's first project in Spain. We've been confident in the creditworthiness of Spain even during the most complex episodes of the crisis. We take great pride in this project and we'll continue to invest here for the long term in relevant infrastructure that brings employment, quality of life and ESG-added value to Spain and its citizens," stated Thierry Deau, Meridiam Founder and CEO.

About Meridiam: Founded in 2005, Meridiam is an independent investment firm specialized in the development, financing, and management of long-term public infrastructure projects. With offices in Paris, New York, Toronto and Istanbul, Meridiam is a leading investor in public infrastructure in Europe and North America. Currently managing €3.2 billion ($3.8 billion) of assets, the firm has to date invested in 40 projects. Designated Global Infrastructure Fund of the Year for the third time in 2012, Meridiam was also the first investor and asset manager to receive ISO 9001 certification for its responsible investment process. Meridiam is a founding member of the Long Term Infrastructure Investors Association. 

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SOURCE Meridiam