Establishment of a construction financing facility for Highway 407 International Inc. by way of short-form prospectus of $220 million subordinated bonds

407 International Inc. completed a public offering on June 20, 2001 by way of short-form prospectus of $220 million 6.40 per cent subordinated bonds, Series 01-C1 due February 16, 2004. The subordinated bonds were offered for sale to the public following their repurchase by 407 International from a syndicate of Canadian and foreign banks which held the subordinated bonds as a result of a restructuring of 407 International’s subordinated term credit facility that was completed as part of the offering.

This bond financing represents the ninth public bond deal and the thirteenth overall bond deal completed over the course of two years, raising over $3.5 billion in total for the company. 407 International Inc. is the sole shareholder, operator and manager of 407 ETR Concession Company Limited, located just north of Toronto. 407 International Inc. is owned by a consortium comprised of Spanish company Cintra Concesiones de Infraestructuras de Transporte, S.A., SNC-Lavalin Inc., a Canadian engineering and construction company, and Capital d’Amérique CDPQ, a subsidiary of the Caisse de dépôt et placement du Québec.

Davis LLP's team of Doug Buchanan and Richard Neville represented the bank syndicate in restructuring the subordinated term credit facility. The bank syndicate was led by Bank of Montreal and included Canadian Imperial Bank of Commerce, Caisse de dépôt et placement du Québec, Banco Bilbao Vizcaya Argentaria and Banco Santander Central Hispano.