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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