Halton Healthcare Services achieves financial close for the New Oakville Hospital project
July 29, 2011
2.00 Billion CAD
On July 29, 2011, Halton Healthcare Services Corporation, with its co-sponsor Infrastructure Ontario, reached financial close with Hospital Infrastructure Partners to design, build, finance and maintain (for a 30-year concession), the New Oakville Hospital project.
The New Oakville Hospital will be a state-of-the-art facility with a full range of health services including: complex continuing care, rehabilitation, renal dialysis, acute inpatient care, maternal child care, inpatient and outpatient adult and child and adolescent mental health, and secondary and tertiary level programs. The hospital will be designed and built to meet the Canada Green Building Council’s Leadership in Energy and Environmental Design (LEED®) rating system, with a goal of achieving LEED® Silver certification.
The New Oakville Hospital project is being delivered using an Alternative Financing and Procurement model. Hospital Infrastructure Partners will receive annual payments from Halton Healthcare Services Corporation over a 30-year period following construction completion. Payments cover construction, building maintenance, life-cycle repair and renewal, and project financing. Project costs will total approximately $2.7 billion after 30 years (approximately $2.0 billion in today’s dollars).
Financing for the New Oakville Hospital Project is comprised of short-term financing provided by The Bank of Nova Scotia, Credit Agricole Corporate and Investment Bank, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, Sumitomo Mitsui Banking Corporation, National Bank of Canada, Canadian Imperial Bank of Commerce, Bank of Montreal and Dexia Crédit Local, S.A., acting through its Canada Branch, with Dexia Crédit Local S.A., acting through its New York Branch, acting as administrative agent, and long term senior secured bonds issued by Hospital Infrastructure Partners, which bonds were underwritten by Scotia Capital Inc. and National Bank Financial Inc.
McCarthy Tétrault LLP represented Halton Healthcare Services and Infrastructure Ontario, with a team led by Gordon Willcocks.