American operator welcomes investment by CPPIB Credit Investments Inc.
The Ports America Companies (Ports America) has 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, US$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.
“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,” said Ports America chief financial officer, Kevin Brown.
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.
Ports America was advised by Goldman Sachs and Perella Weinberg Partners LP, while its legal adviser for the process was Cleary, Gottlieb, Steen & Hamilton LLP.
Ports America, headquartered in New Jersey, is the largest independent marine terminal operator and stevedore company in the United States.
The company currently operates in more than 42 ports and 80 locations.
Ports America handles all types of cargo, including container, bulk, breakbulk, automotive, project, military and cruise.