Power Finance & Risk is pleased to announce the short list for the following award: District Energy Deal of 2019.

We have selected two landmark transactions within the district energy sector for your consideration. Please let us know if your firm is missing from the credits.

Innovate Energy

When the Canadian government put the modernization of Ottawa’s district energy system out to tender, it placed restrictions on the use of long-term private capital, which required the winning consortium, Innovate Energy, to structure the project in a way not done before in the Canadian PPP market. The district energy system heats 80 buildings and cools 67, including parliament buildings. The deal closed on May 29.

Consortium: Engie Services Canada, PCL Constructors Canada, PCL Investments Canada, Black & McDonald, WSP Canada

Architect: BBB Architects Ottawa

Contract value: C$2.6 billion

Concession term: 35 years

Nominal equity:  C$100 million

Revolving credit facility: C$500 million

Lenders: ATB Financial, Bank of Nova Scotia, Desjardins, HSBC, SMBC, TD Bank

Financial adviser to government: PwC

Financial adviser to consortium: TD Securities

Government’s counsel: Norton Rose Fulbright

Consortium’s counsel: Davies

Lenders’ counsel: Fasken

Independent oversight: EY

Technical and design consultant to government: Stantec

Lenders’ technical adviser:  BTY

Insurance consultant: Marsh

Fairness monitor: Knowles Consultancy 

District Energy Networks/Vicinity Energy

Antin Infrastructure Partners made good on its commitment to grow its US presence with the $1.25 billion acquisition of Veolia’s District Energy Networks business in December and rebranding it as Vicinity Energy. Antin funded the purchase with a $770 million debt package that innovatively combined elements of corporate and project financing. The deal built on Antin’s debut US deal the year before and its previous investment in district energy in France. It closed on December 30. Coverage here.

Seller: Veolia

Buyer: Antin Infrastructure Partners

Cogeneration capacity: 413 MW

Total value: $1.25 billion

Total senior secured debt: $770 million

Tenor: Seven years

Coordinating lead arrangers: BNP Paribas (left), Crédit Agricole, Bank of Montréal, MUFG, Natixis

Joint lead arrangers: Société Générale, SMBC

Sell-side financial adviser: BofA Securities

Buy-side financial advisers: RBC Capital Markets, Messier Maris & Associés, PH Villin Conseil

Seller’s counsel: Orrick

Buyer’s/borrower’s counsel: White & Case

Lenders’ counsel: Latham & Watkins

Market consultant: PA Consulting

Independent engineer: Advisian


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