$63.9M Ajax and Pickering Hospital Phase I Redevelopment Reaches Financial Close

Infrastructure Ontario, together with its co-sponsor Rouge Valley Health System, and the Buildings Division of Aecon Group Inc. achieved financial close on the Rouge Valley Health System - Ajax Pickering Hospital Phase I Redevelopment Project in Ajax, Ontario on October 4, 2007. The estimated $94 million total project cost, which includes a $63,941,270 fixed price construction contract, involves the addition of more than 75,000 square feet of new construction and more than 65,000 square feet of renovations. Other highlights include an upgraded and expanded emergency department, expanded laboratory, mental health and ambulatory care facilities, a new Complex Continuing Care Unit with capacity for 30 beds, and the redevelopment of diagnostic imaging and cardiac diagnostic areas. Construction will start in the next few weeks and is expected to be completed in summer 2010.

Pursuant to Infrastructure Ontario's Alternative Financing and Procurement Program, Aecon secured debt financing for the project arranged by Stonebridge Financial Corporation. Stonebridge also served as Aecon's sole financial advisor in connection with the project.

Infrastructure Ontario's legal team was led in-house by Steven Kresak. Infrastructure Ontario and Rouge Valley Health System were represented by Rick Shaban, William McLean, James MacLelland, Dan Boan, Carolyn Wainman, Andrew Smith and Matthew Alter of Borden Ladner Gervais LLP.

Aecon was represented by Tim Murphy, Catherine Doyle and Andrew McFarlane of McMillan Binch Mendelsohn LLP under the guidance of Aecon's in-house counsel L. Brian Swartz and Tim Hutzul.

Stonebridge Financial Corporation and the lenders were represented by Stephen Furlan, Ana Badour, Marc Dorion and Louis-Nicolas Boulanger of McCarthy T├ętrault LLP.