The Ports America Companies successfully refinanced the debt facilities of both Ports America, Inc. (PAI) and MTC Holdings, Inc. (MTC) into a single, unified capital structure.
The refinancing consisted of a new five-year, $475-million senior secured credit facility, including $170 million of revolving credit and letter of credit facilities, and a new seven-year, $375-million Holdco financing. The senior facility was provided by a group of new and existing lenders and led by Royal Bank of Canada. The Holdco facility was provided by CPPIB Credit Investments Inc., a wholly-owned subsidiary of Canada Pension Plan Investment Board (CPPIB), a global institutional investor with more than $190 billion of assets under management and a leading infrastructure and credit investor. Concurrent with the transaction, CPPIB will own a 10 percent equity participation in the company. Highstar Capital remains majority owner of Ports America.
Kevin Brown, Ports America Chief Financial Officer, commented on the process: “This financing consolidates the separate legacy credit facilitates of MTC and PAI into one integrated financing and provides for a long-term capital structure that will give the company the flexibility and runway to continue to be successful.”
Ports America Chief Executive Officer Michael Hassing, expanded upon this accomplishment, saying, “This new partnership further affirms Ports America’s commitment to our customers, supply chain partners and employees. The refinancing and investment allows us to continue to strengthen our position as an industry leader and best in class terminal operator. Most importantly, our management and staff remain dedicated to ensuring future growth, value creation, and world class customer service.”
Ports America was advised by Goldman Sachs and Perella Weinberg Partners LP and its legal adviser was Cleary, Gottlieb, Steen & Hamilton LLP.