Ports America Companies said it had refinanced 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 5-year, $475-million senior secured credit facility, including $170 million of revolving credit and letter of credit facilities, and a new 7-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.
Highstar Capital Founder and Managing Partner Christopher Lee said regarding the refinancing: “We are very excited to welcome CPPIB as new partner in the Ports America business. CPPIB is one of the largest pension funds in the world and one of the most respected leaders in infrastructure investing. We believe its global reach, knowledge of the ports sector, and aligned views will provide us with the ability to continue to grow and continue to expand our business, both within the U.S. and internationally.
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 container, bulk, breakbulk, automotive, project, and military cargo and is also involved in the cruise business.