Dexter Developer General Partnership, an affiliate of Municipal Enterprises Ltd., entered a $580 million, design-build agreement to design and construct the final 55 km of a four lane highway as part of Route 1 in New Brunswick and complete certain upgrades on the existing Route 1, on March 31, 2010.
Transfield Dexter Gateway Services Limited will be responsible for the operation, maintenance, repair and rehabilitation of 235 km of Route 1 running from St. Stephen (at the US border) through Saint John to River Glade (near Moncton), excluding the Saint John Harbour Bridge, until 2040, for which it will be paid an annual amount of $19.8 million, adjusted for inflation, once construction is complete. The design, construction, operation, maintenance and rehabilitation of the project was contracted by the New Brunswick Highway Corporation on behalf of the Province of New Brunswick through a project corporation.
The credit facility with a syndicate of Canadian and foreign banks and Canadian financial institutions was arranged by National Bank Financial as financial advisor to Dexter and National Bank of Canada as administrative agent and book runner.
Dexter and Municipal were represented by Andrew Inch, its in-house counsel, and Cox & Palmer, with a team led by John Laidlaw, QC, with assistance from Peter Forestell, QC, and Jane MacEachern.
The Province of New Brunswick was represented by McInnes Cooper, with a team led by Len Hoyt, QC, with Jaime Connolly and Heather Black.
The lending syndicate was represented by McCarthy Tétrault LLP, with a team led by Byran Gibson, QC, with Conrad Rego, Olga Bochkaryova and Samantha Cunliffe, and by William Kean and Philippe Richard of Barry Spalding.