SJHC Project Reaches Financial Close

On March 11, 2011, St. Joseph's Health Care, London (SJHC) and Infrastructure Ontario reached Financial Close with Integrated Team Solutions (ITS) to design, build, finance and maintain two new mental health care facilities in London and St. Thomas.

Financing for the SJHC project comprises short-term financing provided by The Bank of Nova Scotia, who is also acting as Administrative Agent, Crédit Agricole Corporate and Investment Bank, The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and National Bank of Canada, and long term senior secured bonds issued by Integrated Team Solutions SJHC Partnership, which bonds were underwritten by Scotia Capital Inc. and National Bank Financial Inc.

The ITS team for this project includes Fengate Capital Management, OE Infrastructure Fund L.P., TCPP Infrastructure Fund L.P., LPF Infrastructure Fund and EllisDon Inc., together with EllisDon Corporation providing construction services and Honeywell Limited as service provider.

The new St. Joseph's Regional Mental Health Care London facility will be constructed adjacent to Parkwood Hospital in London and will have a total building area of 437,391 sq. ft. and capacity for 168 beds. Its programs will accommodate inpatient and outpatient services.

The new St. Joseph's Regional Mental Health Care St. Thomas facility will be a forensic mental health-care facility providing specialized inpatient and outpatient services to individuals with a mental illness who have come into contact with the criminal justice system.

ITS will receive annual payments from SJHC over a 30-year period. These payments encompass design, construction, project financing, life-cycle repair and renewal, and building maintenance for the two facilities. The total value of the payments to ITS spread over 30 years is approximately $1.1 billion.

The SJHC and Infrastructure Ontario legal team were led in-house by Steven Kresak, Legal Counsel with 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, Tim Murphy, Catherine Doyle, Michael Burns, Peter Willis, Rob Scavone, Shahen Mirakian, Valerie Garcia, Puja Varma and Julie Han. LPF Infrastructure Fund, OE Infrastructure Fund L.P., TCPP 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 Christopher Moran, 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, Linda Brown, Sarah Bird, Stephen Curran, Morgan Troke and Grant Boyle.

The underwriters were represented by Stikeman Elliott LLP with a team that included Michael Allen.