BC Ferries Creates Capital Market Platform

On May 28, 2004, BC Ferries, operator of the second largest ferry system in the world, closed its initial public offering of $250 million principal amount of senior secured bonds and established its initial syndicated bank credit facility for $355 million. The bond offering and the credit facility are the initial steps in the establishment of a capital markets platform for BC Ferries, which it intends to utilize to revitalize its fleet. The proceeds from the bond offering and the credit facility were used primarily to repay debt to the Province of British Columbia.

The project was directed on behalf of BC Ferries by William Cottick, vice-president corporate affairs and general counsel.

BC Ferries was represented by McCarthy Tétrault, with a team that included Byran Gibson, Richard Balfour, Michael Urbani, Linda Brown, Roger Taplin, Michael Birch, Salman Manki, and Chris Falk (tax).

The lenders were represented by David Kee, Daryl Clark and Neal Wang of Blake, Cassels & Graydon.

The Province of British Columbia was represented by Elizabeth Mayer, Ministry of Attorney General.

The bond offering was underwritten by a syndicate led by CIBC World Markets and including BMO Nesbitt Burns, RBC Capital Markets and TD Securities. The underwriters were represented by Farris, with a team led by Herb Dodd and including Candy Saga, Trevor Scott and Ranj Sangra.