Ontario Teachers' Pension Plan launches $1.88 billion facility

By Angela McDaniels

Seattle, Feb. 1 - The Ontario Teachers' Pension Plan launched a senior secured credit facility of up to $1.88 billion via The Royal Bank of Scotland, according to a bank news release.

Proceeds from the facility, along with equity, will be used to fund the plan's $2.35 billion acquisition of four North American marine container terminals from Hong Kong-based Orient Overseas International Ltd., to fund capital expenditures and for working capital.

RBS Securities Inc. and RBC Capital Markets are co-lead arrangers and co-bookrunners for the facility, with RBS Securities as administrative agent.

The credit facility was structured as a hybrid between leveraged financing and traditional project financing and represents the largest North American port financing done in the syndicated loan market, according to the release.

The acquired terminals are located in Bayonne, N.J., Delta, B.C., and Vancouver, B.C. The acquisition of the New York Container Terminal in Staten Island, N.Y., awaits approval by regulatory authorities.

The Ontario Teachers' Pension Plan is a Toronto-based independent corporation responsible for investing assets and administering the pension of Ontario's teachers.

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