MHCP project Reaches Financial Close

On January 28, 2011, Mental Health Centre Penetanguishene (MHCP) and Infrastructure Ontario reached Financial Close with Integrated Team Solutions (ITS) to design, build, finance and maintain a new forensic mental health facility.

Financing for the MHCP project is comprised of long-term fixed rate financing provided by Sun Life Assurance Company of Canada and The Canada Life Assurance Company and short-term financing provided by National Bank of Canada and The Toronto-Dominion Bank. The ITS team for this project includes Fengate Capital Management, OE Infrastructure Fund L.P., LPF Infrastructure Fund and EllisDon Inc., together with EllisDon Corporation providing construction services and Honeywell Limited as service provider.

MHCP is a 312-bed psychiatric hospital located in the Town of Penetanguishene, approximately 150 km northwest of Toronto, which provides an extensive range of psychiatric inpatient and outpatient services. In addition, MHCP provides Ontario's only maximum secure forensic hospital for clients served by both the mental health and justice systems.

The new facility will replace MHCP's 160-bed Oak Ridge Facility and the 20-bed Brebeuf Facility, with a total building area of approx. 350,000 sq. ft. It will function as a stand alone facility with distinct and specific services. It will be connected to the existing Administration and Toanche buildings and provide MHCP with a more efficient, modern and larger complex.

ITS will receive annual payments from MHCP over a 30-year period. These payments encompass design, construction, project financing, life-cycle repair and renewal, and building maintenance. The total value of the payments to ITS spread over 30 years is approximately $634.1 million.

The MHCP and Infrastructure Ontario legal team were led in-house by Simon Finlayson and Agnes von dem Hagen of Infrastructure Ontario and by Borden Ladner Gervais LLP with a team that included Richard Shaban, William McLean, Shane Pearlman, Dan Boan, Steven Iczkovitz, Andrew Smith and Kalvin Sie.

ITS was represented by McMillan LLP with a team that included Chris Bennett, Catherine Doyle, Peter Willis, Rob Scavone, Shahen Mirakian, Valerie Garcia and Amaan Gangji. LPF Infrastructure Fund, OE Infrastructure Fund L.P. and Fengate Capital Management Ltd. were also represented by Gowling Lafleur Henderson LLP with a team that included Paul Harricks, Alan James, Rob Blackstein and John Whyte.

The ITS team also included Kristen Wittman of Taylor McCaffrey LLP. EllisDon Corporation was represented in-house by Jody Becker and Jim Karahalios (formerly of EllisDon), with support from Peter Schwartz of Harrison Pensa LLP.

Honeywell Limited and Honeywell International Inc. were led in-house by Elliott Gwosdy, with support from Andrew MacDougall and Tobor Emakpor of Osler, Hoskin & Harcourt LLP and Louis Hering and Jesse Jones of Morris, Nichols, Arsht & Tunnell LLP.

The Lenders were represented by McCarthy Tétrault LLP with a team that included Byran Gibson, QC, Sarah Bird, Stephen Curran and Grant Boyle.