King & Wood Mallesons Advises Transurban on Acquisition of Cross City Tunnel Debt

KWM has advised the Transurban Group on its acquisition (subject to regulatory approval and final asset inspection) of all of the senior secured debt exposure of Sydney’s Cross City Tunnel (CCT).

Under this innovative transaction, Transurban will buy all of CCT’s senior secured debt from the Royal Bank of Scotland (RBS) for $475 million and has agreed to pay RBS an additional $27.5 million over four years if traffic flows outperform Transurban’s base case assumptions.  The debt acquisition is anticipated to close in December 2013.

The CCT is currently in receivership and, the receivers will continue with that sale process – Transurban intends to participate in that process.

The KWM team was led by Banking Partners Peter Doyle and Claire Rogers, with Insolvency Partner Tony Troiani providing strategic restructuring advice.

The 2.1 Kilometre Cross City Tunnel links Darling Harbour on the Western Fringe of the Sydney CBD to Rushcutters Bay in the Easter Suburbs. It also includes connections to the Eastern Distributor, in which Transurban holds a 75.1% interest.

www.mallesons.com


Related Posts: