On December 3, 2010, St. Joseph's Healthcare Hamilton (SJHH) and Infrastructure Ontario reached financial close with Plenary Health Hamilton LP to design, build, finance and maintain the hospital's new West 5th Campus project in Hamilton, Ontario.
Financing for the SJHH project was comprised of short-term bonds and long-term bonds and was provided by RBC Dominion Securities Inc. as bond underwriter and initial bond purchaser. Equity is being provided by Plenary Group (Canada) Ltd. and Innisfree PFI Secondary Fund LP.
The SJHH project will provide a new hospital with larger, state-of-the-art facilities in order to better support people and families struggling with mental illness and addiction. The project includes approximately 800,000 square feet of new construction; increased capacity of up to 305 inpatient beds and all associated support services; expanded outpatient clinics for psychiatry, diagnostic imaging and medical services and innovative research and academic spaces.
Plenary Health Hamilton LP will receive annual payments from SJHH over a 30-year period.
Payments cover construction, building maintenance, life-cycle repair and renewal, and project financing. The total value of payments to Plenary Health Hamilton LP spread over 30 years is approximately $1.196 billion ($581 million in present value dollars).
The SJHH and Infrastructure Ontario legal team were led in-house by David Ho, Legal Counsel with Infrastructure Ontario and by Borden Ladner Gervais LLP with a team that included Richard Shaban, William McLean, Shane Pearlman, Daniel Boan, Steven Iczkovitz and Andrew Smith.
Plenary Health Hamilton LP was represented by Davies Ward Phillips & Vineberg LLP with a team that included Steven Martin, Paul Martin, Sonny Bhalla, Patrice Thomas, David Reiner, Bradley Ashkin and Michael Barrett. PCL Constructors Canada Inc. will act as the construction contractor and were represented by John Paul Janssens, Donald Lucky and Mark Hildebrand of Reynolds Mirth Richards & Farmer LLP. Honeywell Limited will act as the Service Provider and were led in-house by Elliott Gwosdy.
The senior debt financing (approximately $370 million) for this project involved an all-bond solution, consisting of short term bonds and long term bonds, underwritten by RBC Dominion Securities Inc.
RBC Dominion Securities Inc. and the short and long term bondholders were represented by Fasken Martineau DuMoulin LLP with a team that included Brian Kelsall, Ella Plotkin, John Sabetti, Sean Morley, Marc Lefler, Alex Nikolic and Louise Kennedy.