McGill University Health Centre Project Reaches Financial Close

On July 15, 2010, McGill University Health Centre (“MUHC”) and Groupe immobilier santé McGill, a partnership of SNC-Lavalin Inc. and Innisfree PFI Secondary Fund LP, announced the financial closure and official signing of a 34-year partnership agreement to design, build, finance and maintain the MUHC's new Glen Campus in downtown Montréal, comprising an adult hospital, children's hospital, chest institute, cancer centre and research institute together with retail space, vehicle parking areas and a central utility plant, with a combined total area of approximately 217,500 square metres.

The Project is being procured by MUHC, through the government agency Infrastructure Québec, as a public private partnership project. The Project constitutes the largest public-private partnership hospital to be built in Canada to date and the biggest P3 project financing to be completed in Québec. The consortium for the Project also comprises SNC-Lavalin Services Ltd., SNC-Lavalin Operations & Maintenance Inc. and Johnson Controls L.P.

The financing for the Project consisted of $764 million long-term senior secured bonds issued by a special purpose corporation and wholly owned subsidiary of Groupe immobilier santé McGill, which bonds were underwritten by Scotia Capital Inc. and Casgrain & Company Limited and Dexia Crédit Local S.A., as well as a $392 million senior secured construction facility made available by seven international banks.

Infrastructure Québec advised MUHC in connection with the Project and was represented in-house by Eve-Marie Le Fort, Claudie Imbleau-Chagnon and Josée Gagnon assisted by Fasken Martineau DuMoulin LLP, with a team led by Claude Gendron that comprised Andrew Ford, Louis Séguin, Lévy Bazinet, Jean-Philippe Gagné, Nicolas Leblanc, Helmut Johannsen and David Little (project documents); Marc Novello and Angela Onesi (financing); Gilles Carli and Jean-François Perreault (tax) and Martin Sheehan and Eric Simard (procurement). MUHC was represented in-house by Harris Poulis, assisted by Borden Ladner Gervais LLP, with a team that comprised Yves Dubois and Morton Gross. The Government of Québec acted through its Executive Director who was represented in-house by Jean Pelletier.

Groupe immobilier santé McGill was represented by McCarthy Tétrault LLP with a team composed of Pierre-Denis Leroux, Linda Brown, Marc Dorion, QC, Richard O'Doherty, Mathieu Dubord, Mary Pagonis, Samantha Cunliffe, Morgan Troke, Matthieu Rheault, Byran Gibson, QC, and Sven Milelli.

SNC-Lavalin Inc. was represented in-house by Réjean Goulet, Michel Jodoin, Louis Fleurent and Janet Oh. SNC-Lavalin Services Ltd. was represented in-house by Jean-Éric Laferrière and Frédéric Gagnon. SNC-Lavalin Operations & Maintenance Inc. was represented in-house by Jeffrey Wise.

Johnson Controls L.P. was represented by Gowling Lafleur Henderson LLP with a team that comprised Darryl Brown, Faithe Holder, Farida James and Rafal Wrzesien.

Ogilvy Renault LLP acted as counsel to the senior lenders and bondholders with a team led by Robert Borduas and composed of Peter Wiazowski, Martin Thériault, Jules Charette, Alain Ricard, Serge Levy, Michèle Friel, Mathieu Deschamps and Pascal Rodier.

McMillan LLP acted as counsel to the bond underwriters with a team that included Peter Willis, Michael Burns and Catherine Doyle.