- Linklaters advises winning consortium on its £2.1bn bid to run the UK’s Channel Tunnel Rail Link
- Linklaters also advises on the £2.1bn HSBC rail financing
Linklaters has advised on two major infrastructure-related deals announced this week, reinforcing the firm’s reputation in this area.
Linklaters advised Borealis Infrastructure and Ontario Teachers' Pension Plan (the consortium) on their £2.1bn purchase from the UK Government of a 30-year concession to run the Channel Tunnel Rail Link - the UK’s first high speed railway, ‘High Speed 1’.
The deal, announced today (5 November 2010) by UK Transport Secretary Philip Hammond, means the consortium will take on the management of the 68 mile line which links London to the Channel Tunnel following completion in late November 2010. The consortium will be responsible for running the line as well as stations such as St Pancras International, and the international stations at Stratford, Ashford and Ebbsfleet.
High Speed 1 is currently used by international Eurostar services between London and European destinations as well as domestic high speed services between London and Kent. The performance of the new operator of the line will be independently policed by the Office of Rail Regulation to ensure that rail passengers' interests are effectively safeguarded.
The Government began a competition for rights to run the line in June 2010. The successful sale was managed for the Government by London and Continental Railways Ltd.
The Linklaters team was led by projects partners Ian Andrews and Fiona Hobbs, in London.
Separately, Linklaters has also advised the staple funders and the ASBO (Accelerated Structured Bond Offering) providers - which included Credit Agricole SA; HSBC Bank; ING Bank; Lloyds TSB Group PLC; RBC Capital Markets; RBS; Societe Generale; and SMBC Capital Markets Limited - on the raising of £2.1bn, by means of a bank and bond debt, with respect to the disposal by HSBC of its UK rolling stock business.
The deal, announced on 4 November, is the first accelerated structured bond offering of its kind, being a joint bank and bond solution which sees bonds being issued to fund the acquisition rather than as a subsequent re-financing transaction.
The Linklaters team was led by capital markets partner Julian Davies and projects partner Stuart Rowson, in London.
Bruce White, Linklaters global head of projects, said:
"These transactions demonstrate the importance of innovation and deliverability in what is still a difficult market and reflect a tremendous achievement for the sponsors and financiers involved - we're proud to have been able to use our expertise to help on both".
For further information, please contact: Rupert Winlaw on +44 20 7456 3219 or Sarah Peters on +44 20 7456 2153.
