March 05, 2010
Torys is delighted to announce that Euromoney's Project Finance magazine has recognized the Niagara Health System project financing as the North American Social Infrastructure Deal of the Year.
Mark Bain, Dan Ford and Tara Mackay represented Infrastructure Ontario and Niagara Health System on the design-build-finance-maintain (DBFM) procurement for the new hospital facility in St. Catharines, Ontario. The project is Ontario’s largest multisite hospital amalgamation, comprising six hospital sites and an ambulatory care centre that serve the 12 municipalities that make up the Regional Municipality of Niagara.
Reaching the March 27, 2009 financial close on the C$535 million project – the first DBFM concession in the province since the credit crisis began – required "monumental efforts" by the Province of Ontario and the initial sponsor Plenary Group. Several adaptions had to be made, most notably in Ontario providing milestone payments to make up for part of a financing shortfall requirement. Plenary Group also brought in Borealis Infrastructure as an equity participant, and the project was de-levered from an initial 90/10 debt-equity split to approximately 83/17.
Infrastructure Ontario and Niagara Health System were additionally recognized for their role in the project with the Canadian Counsel for Public-Private Partnerships' 2009 Award of Merit for Project Financing.