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Transaction/Case Details

Muskrat Falls project secures C$5 billion global bond financing

DATE CLOSED

December 13, 2013

BUSINESS SECTOR

Power

LEAD OFFICE

Toronto

VALUE

5 Billion CAD


OVERVIEW

On December 13, 2013, the C$5 billion global bond financing for the construction and development of the Muskrat Falls hydroelectric facility to be built on the Lower Churchill River in Labrador was completed.

Guaranteed by the Government of Canada, the C$5 billion bond financing is the single largest infrastructure financing in Canadian history, and the C$7.7 billion project is the most expensive capital works project in the history of the province of Newfoundland and Labrador.

The financing is the single largest infrastructure financing in Canadian history, and the C$7.7 billion project is the most expensive capital works project in the history of the province of Newfoundland and Labrador.

The facility will generate 824 MW of electricity, with 40% of the generated power to be transported via subsea cable to Newfoundland and 20% to be transported to Nova Scotia. The remaining 40% of the generated power will be used for industrial purposes in Labrador or sold to other energy markets in Nova Scotia. Construction is underway and the project is expected to begin operation in 2017.
TD Securities and Goldman Sachs co-underwrote the offering and were co-lead arrangers of the bonds, along with a syndicate of financial institutions.
TD Securities, headquartered in Toronto, provides advisory and capital market services to corporate, government and institutional clients.
Goldman Sachs, headquartered in New York, is a global investment banking, securities and investment management firm.
McCarthy Tétrault represented TD Securities and Goldman Sachs, as co-underwriters and co-lead arrangers.The team was led by Barry Ryan and Included Matthew Appleby, Gordon Baird, Linda Brown, Seán O'Neill, and Andrew Parker.

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