Syncora Holdings Ltd. (fka SYCRF)

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STREET TALK Jul 3 2017 at 12:15 AM Updated Jul 3 2017 at 12:15 AM Save Article Print License Article

Aquasia on board Reliance Rail refinancing

by Sarah Thompson Anthony Macdonald Joyce Moullakis
Angus James and Colin McKeith's boutique Aquasia has scored a role on NSW trains project Reliance Rail's pending $2 billion refinancing.

Street Talk understands NSW Treasury has tapped Aquasia to advise it on talks with Reliance Rail's shareholders, lenders and other stakeholders, after taking pitches from a handful of investment banks, boutique advisers and accounting firms last month.

Aquasia is expected to get working straight away, with the trains project's debt due to expire as early as September 2018. That first tranche, worth $1.15 billion and structured as a senior secured bank facility, is expected to be refinanced before the end of this year.

The deal pits the government, which guaranteed the project and has the right to take full ownership of it pending a successful refinancing, against equity owners AMP Capital, Downer EDI and Amber Infrastructure Ltd, and credit wrapper Syncora.

NSW must decide whether it wants to take the now financially successful project back on to its own balance sheet, or leave it in the hands of the existing shareholders. As always, it's about price.

It seems likely that the equity holders will tip in some fresh funds as part of the deal and buy-back the government's right to take control. While the deal may sound simple enough, there have been on and off talks between the parties for at least the past 18 months and so far nothing has been agreed.

Aquasia replaces Lazard in NSW's camp, while RBC Capital Markets and Moelis are advising Reliance Rail's shareholders and credit wrapper, respectively.



Read more: http://www.afr.com/street-talk/aquasia-on-board-reliance-rail-refinancing-20170701-gx2ufq#ixzz4mX3NGljr
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