Another light-rail mega-deal led the week's financial closes by value, but it was the renewable energy sector that saw the strongest deal flow. The telecom sector meanwhile saw its first financial close of 2016, according to data provided by sister platform IIassets.com.
Results from an 11 February financial close on the PHP$65 billion (€1.2 billion; $1.36 billion) Light Rail Transit Line 1 South Extension PPP (LRT 1) in the Philippines led as the only megadeal reported to IIassets.com for the week. The 35-year public-private partnership was awarded to Light Rail Manila Corporation (LRMC), which will operate and maintain the existing Line 1 light rail and construct an eight-station, 11.7-kilometre extension from the present end point at Baclaran to the Niog area in Bacoor, Cavite.
LRT 1 was sponsored by Metro Pacific Investments Corp, AC Infrastructure Holdings and Macquarie Infrastructure Holdings. Financing for the project was supported by a $502.5 million loan provided by a three-bank tie-up including Rizal Commercial Banking Corp (RCBC), Security Bank Corporation (SBC) and The Metropolitan Bank & Trust. Shearman & Sterling advised on the transaction.
On 17 February, the Rock Rail Suburban Train Fleet Replacement Project tendered by Govia Thameslink Railway (GTR) became the second-largest financial close in the transportation space for the week at £200 million (€258 million; $290.7 million). The UK-based greenfield project is aimed at financing and developing a suburban train fleet on the Great Northern route to replace aging class-313 trains to run between Moorgate and the City of London, Welwyn & Hertford, and Stevenage & Letchworth. SL Capital I led the transaction and was advised by Operis. Senior debt was provided by Aviva
The final financial close reported in the transportation sector for the week is the Tertir Ten Port Terminals Acquisition. While financial details have yet to emerge, IIassets.com reports that Yilpert Holdings, a subsidiary of Yildrim Group entered into an agreement with Mota-Engil SGPS and Novo Banco to acquire 100 percent of the shares for TERTIR and its portfolio of eight port terminals across Europe. All told, the terminals have capacity to process up to 2.7 million twenty-foot equivalent container units (TEUs), and two break bulk and grain terminals have an annual capacity of roughly 4.5 million tons.
The top energy deal of the week was the $375 million investment into Rice Midstream GP Holdings Acquisition by EIG Global Energy Partners for an 8.25 percent limited partner interest, which reached financial close on 22 February. GP Holdings is a newly formed subsidiary of RMH based in the US. The transaction was advised by Barclay's Bank, with Kirkland & Ellis and Vinson & Elkins as legal advisers.
Details have come to light this week on the Gulf Oil Four Refined Products Terminals Sale to Arclight Capital Partners by Gulf Oil LP, which reached financial close on 14 January. The $8 million acquisition comes with 28 storage tanks comprising 816,000 barrels of shell capacity located in Pennsylvania. Andrews Kurth was legal adviser to Arclight on the transaction.
Cerberus Capital Management's Four Spanish Wind Farms Acquisition lead the renewables space this week with a deal value of $194.5 million. The 22 February financial close was reached between Cerberus and a group of four prior owners: Sinia Renewables, Comsa Renewables, Esif, and Renovis. The buyer was legally advised in the transaction by Watson, Farly & Williams on acquiring the portfolio of wind farm assets comprising 105.8MW in total generation, with 20MW coming from Sierra Sesnandez in Zamora, 30.6MW from Loma del Capon in Grenada, 30MW from Magaz in Palencia and 25.2MW from Cova de Serpe II in Lugo.
Conergy reported selling a portfolio of five solar projects with a total output of 34.4MW to Luxcara for $58.14 million. The Luxcara acquisition closed on 16 February with an arrangement for Conergy to continue its operations and maintenance role in each of the projects.
PSEG Solar Source's Larimer Solar Energy Centre Acquisition from Juwi came just on the heels of the Conergy deal with a $54 million financial close achieved on 23 February. The project is still under development on a 290-acre site near Fort Collins, Colorado, and is expected to reach completion in December. At that time, the array will have a generation capacity of 36.3MW which will be sold through a 25-year power purchase agreement with Platte River Power Authority (PRPA). Juwi, the project developer, will continue on as engineering, procurement and construction contractor.
Watson Farley & Williams advised on the next-largest renewables deal of the week, the $33.9 million Silovuori Onshore Wind Park Project, which closed on 19 February with 100 percent of financing coming from a loan via Finland's HSH Nordbank. The wind farm in Oulu, Finland has a total capacity of 26.4MW.
The final renewables deal to report financial details of its 18 February close this week was the Falkenhagen Biogas Plant Acquisition by WELTEC Group subsidiary Nordmethan GmBH. The decommissioned German biogas plant built in Brandenburg in 2007 was acquired for $2.24 million. Once operations re-commence, it is expected to generate 3.3MW of electricity.
Reported without financial details this week was the Cabeolica Wind Farm Acquisition by the Africa Finance Corporation (AFC), which saw the development bank purchasing the remaining minority stake that it did not already own in the project. AFC picked up the remaining shares in the 26MW Cape Verde asset from InfraCo Africa for an undisclosed amount.
This week saw the first financial close reported to IIassets.com in the telecom sector this year, with Hong Kong Broadband Network acquiring the entire equity interest in New World iMedia Solutions and New World Telecommunications (NWT) for $89.3 million. The New World Telecom Acquisition was backed by a five-year loan for the full amount by JPMorgan which matures on 1 February 2021.