Rainbow Hospital Partnership (RHP), an indirect wholly owned subsidiary of SNCLavalin Group Inc. (TSX:SNC) (SNC Group), acting through its general partners Rainbow1 Partner Inc. and Rainbow2 Partner Inc., completed the refinancing of the debt initially provided by SNC Group on the design, construction, commissioning, financing and certain operations and maintenance functions of the new Restigouche Hospital Center for psychiatric care in Campbellton, New Brunswick. This was done by issuing and selling $51.5 million principal amount of short term senior secured bonds due October 2014, and $71.4 million of long term 30-year senior secured bonds (the bonds), for a total aggregate principal amount of $122.9 million, the whole by way of private placement made to institutional investors. Casgrain & Company Limited acted as sole agent for the offering of the bonds.
In 2011, RHP was awarded a public-private partnership contract by the province of New Brunswick to design, build, commission, finance and provide certain operation and maintenance functions for the hospital. The facility, which is being built by an SNCLavalin-led joint venture, will have 140 beds in seven in-patient units, and facilities for education and research, clinical support, administration and general support services. SNC-Lavalin will also provide operations and maintenance services for the hospital for a total of 30 years.
SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. Founded in 1911, SNC-Lavalin has offices across Canada and in over 40 other countries around the world and is currently active in some 100 countries.
Norton Rose Fulbright Canada LLP represented RHP and SNC Group with a team led by Alain Ricard (financial services/ debt finance) and Elliot Shapiro (securities, corporate/M&A) and included Michèle Friel, Catherine De Laboursodière, Mélanie Dupuis-Giuliani and Renée Loiselle.
Casgrain & Company Limited, as agent to the bondholders, was represented by Osler, Hoskin & Harcourt LLP with a team led by Étienne Massicotte (financial services) and Christopher Main (corporate finance and securities) and included Raphael Am-ram and Mikulas Arendas.