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National Bank Financial Inc. and Axium Infrastructure Inc. have completed the closing of the Canadian Sea-to-Sky Highway Improvement P3 Project refinancing. 

The CAD556.5 million (US$427 million) financing for the Sea-to-Sky Highway Improvement Project has closed with strong investor support and an A2 rating from Moody’s. National Bank Financial acted as lead agent and sole book runner for the bond issue. BMO Capital Markets, CIBC World Markets and Desjardins act as co-managers.

Moody's Investors Service has assigned a definitive A2 senior secured rating to the CAD556.5 million senior secured amortizing bond to be issued by Sea-to-Sky Highway Investment Limited Partnership, the consortium in charge of the concession formed by Axium Infrastructure, Régime de Rentes du Mouvement Desjardins and Nova Scotia Pension Agency. 

One year ago, Moody’s Investor Services rated about CAD583.1 million of debt to be issued by Sea-to-Sky Highway Investment LP. However, despite the interest of a group of buyers, the deal didn't get closed. 

Project involves the development of capacity and safety improvements to the 100 km of roadway between West Vancouver and Whistler, as well as the operations, maintenance and rehabilitation of the two-to four-lane roadway. The total project investment stands at CAD600 million (US$460 million).

In 2010 the consortium acquired 100% of the economic interests in the 25-year design-build-finance-operate (DBFO) concession contract of the project from Macquarie Essential Assets Partnership (MEAP), who was awarded the concession contract in 2005.

Peter Hepburn, Head and Managing Director, Infrastructure Finance at National Bank Financial said:

“National Bank Financial is pleased to have been selected by the Sea-to-Sky Highway Investment sponsors to be their financial partner in leading this major long-term financing effort. The offering attracted broad market interest from Canada, the U.S., Europe and Asia.”

Dominic Chalifoux, Vice-President & Senior Asset Operations Director of Axium Infrastructure, said:

“Sea-to-Sky Highway is an exceptional transportation infrastructure asset with a strong operating history and an attractive long-term profile, which aligns perfectly with our investment strategy. The refinancing of this asset was executed at compelling terms, providing for stable long-term cash flows.”