Woodstock General Hospital Project Reaches Financial Close

On October 23, 2008, the Woodstock General Hospital, with its co-sponsor Infrastructure Ontario, reached financial close with Integrated Team Solutions (ITS), their lenders, Sun Life Assurance Company of Canada, Industrial Alliance Insurance and Financial Services Inc., The Great-West Life Assurance Company and CIT Financial Ltd., and the lender's agent, CIT Financial Ltd., to build, finance and maintain a new state-of-the-art health care facility that will replace the existing Woodstock General Hospital. The ITS team for this project includes EllisDon Corporation and LPF Infrastructur e Fund, together with Honeywell Limited as service provider.

After construction is completed, ITS will receive annual service payments from Woodstock General Hospital over a 30-year period. Payments cover construction, building maintenance, lifecycle repair and renewal and project financing. The payments will total approximately $599.3 million after 30 years. In today's dollars this is equivalent to approximately $268.7 million. Including other non-capital and fixed costs, such as replacement furniture, equipment, permits, architectural and engineering fees, transaction fees, project management fees and operating costs related to facilities maintenance, the total cost of the project is approximately $685 million.

The project is structured as a build-finance-maintain project and will be delivered under the provincial government of Ontario's Alternative Financing and Procurement (AFP) delivery model.

Infrastructure Ontario's legal team was led in-house by Tariq Taherbhai and Graham McLeod. Ogilvy Renault LLP acted as counsel to Infrastructure Ontario and the Woodstock General Hospital in the structuring, procurement, negotiation and settlement of the project documents, with a team that included Merie-Anne Beavis, Sandra Nissan, Mary Kelly, Christopher Hall and Evelyn Li. Bill Pigott of Miller Thomson LLP provided risk management and other contract advice to Woodstock General Hospital.

ITS was represented by McMillan LLP with a team that included Chris Bennett, Tim Murphy, Peter Willis, Rob Scavone, Catherine Doyle and Valerie Garcia and Gowling Lafleur Henderson LLP with a team that included Lilly Wong, Paul Harricks, Alan James, Rob Blackstein and Paul Jachymek. The ITS team also included Jody Becker, in-house counsel at EllisDon; Peter Schwartz of Harrison Pensa LLP and Kristen Wittman of Taylor McCaffrey LLP. Honeywell was represented internally by Elliott Gwosdy.

CIT Financial Ltd., as agent and arranger, was represented in-house by Peter Dorsey. McCarthy Tétrault LLP acted as counsel to CIT Financial Ltd. and the lenders with a team that included Byran Gibson, QC, Linda Brown, Sarah Bird, Jessica Beverley and Jennifer Smith. Sun Life was represented in-house by Alec Svoboda; Great-West Life was represented in-house by Virginia Toni.