New Oakville Hospital Project Reaches Financial Close

Halton Healthcare Services Corporation, with its co-sponsor Infrastructure Ontario, reached financial close with Hospital Infrastructure Partners to design, build, finance and maintain (for a 30-year concession), the New Oakville Hospital project.

The New Oakville Hospital will be a state-of-the-art facility with a full range of health services including: complex con-tinuing care, rehabilitation, renal dialysis, acute inpatient care, maternal child care, inpatient and outpatient adult and child and adolescent mental health, and secondary and tertiary level programs. The hospital will be designed and built to meet the Canada Green Building Council's Leadership in Energy and Environmental Design (LEED) rating system, with a goal of achieving LEED Silver certification.

The New Oakville Hospital project is being delivered using an Alternative Financing and Procurement model. Hospital Infrastructure Partners will receive annual payments from Halton Healthcare Services Corporation over a 30-year period following construction completion. Payments cover construction, building maintenance, life-cycle repair and renewal, and project financing. Project costs will total approximately $2.7 billion after 30 years (approximately $2 billion in today's dollars).

Infrastructure Ontario's legal team was led in-house by Tariq Taherbhai, Vice President, Project Legal, and David Ho, Legal Counsel. McCarthy Tétrault LLP acted as counsel to Infrastructure Ontario and Halton Healthcare Services Corporation in the structuring, procurement, negotiation and settlement of the project documents, with a team that included Gordon Willcocks, Godyne Sibay, Cynthia MacDougall, Andrew Collingwood, Tristan Musgrave, Brad Nicpon, Jonathan See (financing), Vaibhav Sahay (financing), and Gerald Griffiths (labour and employment).

Hospital Infrastructure Partners' team members include Fengate Capital Management Ltd., OE Infrastructure Fund L.P., TCPP Infrastructure Fund L.P., LPF Infrastructure Fund, Fengate Greenfield Infrastructure Fund L.P., Toronto Elec-trical Workers Infrastructure Fund L.P., Carillion Private Finance Limited and EllisDon Inc., together with a joint venture formed by EllisDon Corporation and Carillion Construction Inc. providing construction services and Carillion EllisDon Services (NOH) Inc., an entity controlled by Carillion Canada Inc. and EllisDon Corporation, as service provider.

Financing for the New Oakville Hospital Project comprises short-term financing provided by The Bank of Nova Scotia, Credit Agricole Corporate and Investment Bank, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, Sumitomo Mitsui Banking Corporation, National Bank of Canada, Canadian Imperial Bank of Commerce, Bank of Montreal and Dexia Crédit Local, S.A., acting through its Canada Branch, with Dexia Crédit Local S.A., acting through its New York Branch, acting as administrative agent, and long term senior secured bonds issued by Hospital Infrastructure Partners, which were underwritten by Scotia Capital Inc. and National Bank Financial Inc.

Hospital Infrastructure Partners was represented by McMillan LLP, with a team that included Chris Bennett, Tim Mur-phy, Peter Willis, Rob Scavone, Michael Burns, J.R. Beaudrie, Valerie Garcia and Julie Han. Fengate Capital Management Ltd., OE Infrastructure Fund L.P., TCPP Infrastructure Fund L.P., LPF Infrastructure Fund, Fengate Greenfield Infrastruc-ture Fund L.P. and Toronto Electrical Workers Infrastructure Fund L.P. were also represented by Gowling Lafleur Hen-derson LLP with a team that included Paul Harricks, Alan James and Rob Blackstein. The HIP team also included Kristen Wittman of Taylor McCaffrey LLP. EllisDon Corporation was represented in-house by Jody Becker and Christopher Moran, with support from Peter Schwartz of Harrison Pensa LLP. Carillion Construction Inc. and Carillion Canada Inc. were represented in-house by Cecile Chung and Adam Lewinberg. Carillion Private Finance Limited was also represented by Kathy Hughes and Tanya de Villiers of Slaughter and May.

The lenders were represented by Stikeman Elliott LLP (Toronto) with a team that included Mihkel Voore, Kenton Rein, Aaron Fransen, Jonathan Moncrieff, Sumbul Ali, Warren Ng, Mark McElheran and Jason Kroft. The underwriters were represented by Stikeman Elliott (Vancouver) with a team that included Michael Allen and Jamie Templeton.