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Bridging North America (BNA), a consortium consisting of ACS Group, Aecon Group and Fluor Corporation, is issuing CAD454.5 million (US$350.9 million) in medium to long-term bonds to finance the construction of the Gordie Howe International Bridge. BNA was awarded a contract to design, build, finance, operate and maintain the bridge in June.
The bond issue consists of CAD163.5 million (US$126.2 million) 3.644% series A senior secured notes due 31 May 2038 and CAD291.0 million (US$224.7 million) 4.058% series B senior secured notes due 31 August 2053. S&P Global Ratings has assigned its preliminary A- rating to both.
According to S&Ps disclosure, BNA is also in the process of securing a CAD587.14 million (US$453.3 million) senior construction loan facility.
The consortium is contracted to deliver a new 2.5km six-lane cable-stay bridge that will link Windsor, Ontario (Canada) to Detroit, Michigan (USA) over the Detroit River. With a main span length of 853m, the bridge will be the largest cable-stay bridge in North America measured by main span once completed.
The approximately 36-year availability-based concession agreement also covers two approach bridges, Canadian and U.S. Ports of Entry complexes, which will include border inspection and maintenance facilities, and a new interchange on the approach roads to the U.S. POE, including four new road bridges, five new pedestrian bridges, and four long bridges crossing a railway and connecting to Interstate Highway 75.
The projected total construction cost is US$3.46 billion over an estimated 74-month period.
S&Ps disclosure states that BNA will use debt proceeds, together with CAD2.74 billion (US$2.115 billion) in progress payments and CAD37.50 million (US$29.0 million) in capital payments from the contracting authority Windsor-Detroit Bridge Authority (WDBA) and CAD93.04 million (US$71.83 million) in equity contributions, to fund construction.
The consortium partners are expected to achieve financial close of the project by the end of next month.
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