SNC-Lavalin announces Rainbow Hospital Partnership's successful debt refinancing

Aug 06, 2013, 08:03 ET from SNC-Lavalin

MONTREAL, Aug. 6, 2013 /CNW Telbec/ - SNC-Lavalin (TSX: SNC) today announces that Rainbow Hospital Partnership (RHP), in which it holds a 100 percent interest, has successfully completed an agreement with lenders to refinance its project debt for the Restigouche Hospital Centre for psychiatric care in New Brunswick.

The agreement refinances an aggregate principal amount of $122.9 million, composed of: $51.5 million of short-term bonds due in October 2014, and $71.4 million in long-term 30-year bonds, the operation term of the project. This project debt is non-recourse to SNC-Lavalin.

"We are pleased to have successfully closed this project-debt refinancing, a milestone that reaffirms the support of the financial markets for our infrastructure projects," said Gerry Grigoropoulos, Senior Vice-President, SNC-Lavalin Capital. "These bonds, rated A (low) by DBRS and placed by Casgrain & Company Limited, were well received by the market."

In 2011, RHP was awarded a public-private partnership contract by the province to design, build, commission, finance and provide certain operation and maintenance functions for the hospital. The facility, being built by an SNC-Lavalin-led joint venture, will have 140 beds in seven in-patient units, and facilities for education and research, clinical support, administration and general support services. SNC-Lavalin will also provide operations and maintenance services for the hospital for a total of 30 years.

SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. Founded in 1911, SNC-Lavalin has offices across Canada and in over 40 other countries around the world, and is currently active in some 100 countries.