407ETR successfully refinances and lowers interest costs

407 International, operator of the eleven year old 407ETR tollroad in Toronto has successfully refinanced $400m (C$500m @C$=80c) of debt despite difficult times for financing.

They have just announced they successfully sold $160m (C$200m) of five year senior notes at 5.1%, and $240m (C$300m) of 3 year senior notes at 4.65% to a syndicate led by RBC Dominion Securities. Also in the lending group are BMO Nesbitt Burns, Scotia Capital, TD Securities, Casgrain & Company, CIBC World Markets and National Bank Financial.

The debt being rolled over was costing 6.05% so the toller is ahead and lowers its borrowing costs with the refinancing.

407ETR is one of the top grossing tollroads in North America with over $400m (C$500m) in annual toll revenue.

TOLLROADSnews 2009-01-15