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More solid progress on Reliance Rail

http://www.theaustralian.com.au/business/dataroom/aquasia-wins-role-in-reliance-rail-refinancing/news-story/09d257f0bcc02a6e6ab2f6c0f4ad463f

DATAROOM
AquAsia wins role in Reliance Rail refinancing
The Australian
12:00AM July 3, 2017
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BRIDGET CARTER
Mergers & Acquisitions EditorSydney
@BridgetCarterb

SCOTT MURDOCH
JournalistSydney
@murdochsj

The refinancing of Reliance Rail’s $2 billion debt pile is shaping up to be a lucrative affair for boutique advisers with AquAsia the latest to land a role working for the NSW government.

Firms have been pitching for the role in recent weeks, but AquAsia is understood to have landed the role in recent days.

The firm has previously worked on transactions involving companies such as Transurban, Foxtel and APA Group. The appointment comes after Fort Street Advisers was drafted in to help the listed Downer EDI on its position.

Reliance Rail is a public-private partnership formed for the construction of the NSW government’s Waratah trains, of which Downer is a stakeholder.

It has the job of making and maintaining the suburban passenger trains, building 626 new carriages at a cost of $3.6bn.

The company is due to refinance its $2.2bn debt pile next year, and the state government has the option to buy Reliance Rail for about $170m as part of an agreement reached in 2012 after it guaranteed its debt at a time it faced collapse.

Other boutique firms that have been offering advice in relation to Reliance Rail in recent times have been Lazard, Moelis and law firm Clayton Utz.

Reliance was tasked with the delivery of 78 Waratah trains.

Lenders to the project include NAB, Westpac, Mizuho Bank and Sumitomo Mitsui Banking Corporation.

The business is 49 per cent owned by the listed services company Downer EDI; 33 per cent by AMP Capital; and International Public Partnerships Limited owns the remainder.

Meanwhile, Downer now has at least 60 per cent of services company Spotless after it launched a $1.2bn takeover bid for the listed business.