Macquarie Atlas Roads (MQA) has announced it has acquired the remaining 50% interest in the Dulles Greenway for US$445 million.

The acquisition will increase MQA’s interest in the Greenway to 100%. Financial close is expected during the first half of 2017.

The Dulles Greenway toll road is a 22-km operating toll road, linking the Dulles International Airport to Leesburg, through Loudoun County, Virginia. The road is six lanes for most of its length, and can be expanded to meet future traffic demands. Over the last four years the Greenway has experienced compound annual traffic and revenue growth rates of 3.5% and 6.1% respectively.

Dulles Greenway is a relatively young toll road with operations having commenced in September 1995. There are currently nine operating interchanges.

Kirkland & Ellis LLP advised MQA on the acquisition.

Recently MQA announced the completion of its AUD185 million (US$140.5 million) placement of new MQA stapled securities to institutional and investors. The placement offer proceeds will be used to partially fund MQA’s acquisition of the 50% stake in the project. 

The Placement Offer was strongly supported and oversubscribed by existing security holders and new investors at a fixed price of AUD4.85 per New Stapled Security, representing a 4.9% discount to MQA’s last closing price of AUD5.10.

MQA’s Chief Executive Officer, Mr Peter Trent, said:

“The Acquisition represents a value accretive investment for MQA, enhancing our ability to optimise Greenway’s key operating business decisions, capital structure and cash flows over the longer term, to ensure the reliability of its service to commuters and drive future asset performance.”