CAMH Redevelopment Project Reaches Financial Close

On December 16, 2009, the Centre for Addiction and Mental Health (CAMH) and Infrastructure Ontario reached financial close with Carillion Health Solutions' CHS (CAMH) Partnership to design, build, finance and maintain the next phase of CAMH's redevelopment project on Queen Street West in Toronto.

Financing for the CAMH project is being provided by Scotia Capital Inc., Dexia Crédit Local S.A. (acting under the name Dexia Capital Markets) and Casgrain & Company Ltd. as long-term debt underwriters. Construction financing is provided by Banco Espirito Santo de Investimento, S.A., New York branch, The Bank of Nova Scotia and Dexia Crédit S.A. acting through its Canada branch. Equity is being provided by Carillion Private Finance Limited and by Fengate Capital Management Ltd. on behalf of OE Infrastructure Fund.

The CAMH Redevelopment Project will see the demolition of the existing CAMH administration building and construction of three new buildings. In total, more than 450,000 square feet of new space will be created in this phase. The CAMH Redevelopment Project will be delivered using an Alternative Finance and Procurement model. CHS (CAMH) Partnership will receive annual payments from CAMH over a 30-year period. Payments cover construction, building maintenance, life-cycle repair and renewal, and project financing. The annual payments along with payments made at substantial completion will total approximately $551 million after 30 years (equivalent to $293 million in today's dollars).

The CAMH and Infrastructure Ontario legal teams were led in-house by Graham McLeod, Vice President, Project Legal and Tariq Taherbhai, Senior Legal Counsel, with Infrastructure Ontario and by Borden Ladner Gervais LLP with a team that included Richard Shaban, William McLean, Joanne Foot, Steven Iczkovitz, Morton Mitchnick, Andrew Smith and Shane Pearlman.

Carillion Health Solutions was represented in-house by David Rosenberg, Jane Mackreth, Cecile Chung and Chris Buck and by Blake, Cassels & Graydon LLP with a team that included Ian MacIntosh, Leslie Wong, Mark Johnson, Vivian Kung and Jonathan Domanko (corporate), Anne Stewart, Simon Finch, Samantha Rossman and Alexis Levine (finance) and Jim Hilton (real estate). Fengate and the OE Infrastructure Fund were represented by Gowling Lafleur Henderson LLP with a team that included Paul Harricks, Alan James, Darryl Brown and Rob Blackstein.

The lenders and underwriters were represented by McCarthy Tétrault LLP with a team that included Byran Gibson, Linda Brown, Sarah Bird, Morgan Troke and Samantha Cunliffe and by Torys LLP with a team that included Sabrina Gherbaz, Michael Feldman and Andrew Prodanyk.