Syncora Holdings Ltd (fka SYCRF)

[DennyCrane550]

Full ReFi, no more RED FLAG worries.....
Syncora's BIG credits and overall exposure will see $866m evaporate

'Liquidity Mismatch' will be vanquished

Further general reserves may well be released


http://www.theaustralian.com.au/business/dataroom/windfall-for-state-as-amp-and-amber-take-reliance/news-story/6842969455b4d190a59bee43c3e6d3fe


DATAROOM

Windfall for state as AMP and Amber take Reliance

BRIDGET CARTER,SCOTT MURDOCHThe Australian
12:00AM November 27, 2017



AMP Capital and Amber Infrastructure are in the final stages of cementing their recapitalisation and refinancing of Reliance Rail in a deal that is worth about $2.3 billion and set to provide a lucrative windfall for the NSW government.

DataRoom can reveal that AMP Capital and Amber Infrastructure, which is controlled by International Public Partnerships out of Britain, are planning what is effectively a $2.3bn-odd acquisition of Reliance, with the transaction comprising $1.9bn of debt and $400 million of equity.

As part of the agreement, the state government will receive a payment worth tens of millions of dollars after it stood behind the entity when it came close to collapse some time ago.

The acquisition is expected to be announced tomorrow, sources have said, with Royal Bank of Canada advising the consortium and Aquasia providing advice to the state government.

Reliance Rail is a public-private partnership that was formed for the construction of the NSW government’s Waratah trains.

It is one of the largest outsourcing engineering companies in Australia and has been the entity responsible for making and maintaining Sydney’s new Waratah suburban passenger trains, building 626 new carriages at a cost of $3.6bn.

Owners have included Downer, which has a 49 per cent interest, AMP Capital with 34 per cent and the 17 per cent holder has been Amber Infrastructure.

The state government agreed in 2012 to inject $175m into the entity next year and to ensure Reliance could receive additional financing from its lenders to stave off a collapse.

The agreement was conditional on the successful delivery of 78 Waratah trains.

However, the latest recapitalisation and refinancing will allow the government out of its responsibilities for paying the $175m and will instead receive a payment, thought to be worth at least $50m.

It will also see listed engineering company Downer, which has been working with Fort Street Advisers and recently acquired services provider Spotless, walk away from the entity.

The situation has proved to be a lucrative fee earner for recapitalisation specialists over the years, with Lazard and Moelis also having been involved in the situation at various stages.

Lenders to Reliance Rail are understood to be the National Australia Bank, Westpac, Mizuho Bank and Sumitomo Mitsui Banking Corporation.

However, the latest deal is thought to provide a particularly positive outcome for the state.

The obligation to pay out $175m is removed and access to additional maintenance facilities is provided at its Auburn Maintenance Centre. It also prevents additional spending on a new facility by the state for the new generation of trains.