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Overview

ICBC contributes $38.26 million USD to the $110 million USD term loan tranche of a $115 million USD syndicated loan for John Laing Infrastructure Fund's acquisition of a 100% stake in Project Service LLC

Commitments (Constant USD, 2023)$41,731,007
Commitment Year•2016Country of Activity•United StatesDirect Recipient Country of Incorporation•GuernseySector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 30, 2016
Start (actual)
Jun 30, 2016
End (actual)
Jun 30, 2016
Last repayment (originally scheduled)
Jun 30, 2023

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • ING Group N.V.
  • Siemens Financial Services GmbH (SFS)

Receiving agencies

Private Sector

  • John Laing Infrastructure Fund Limited (JLIF)

Loan description

ICBC contributes to $115 million USD syndicated loan for John Laing Infrastructure Fund's acquisition of a 100% stake in Project Service LLC

Interest type•UnknownMaturity•7 years

Narrative

Full Description

Project narrative

On June 30, 2016, financial close was reached on a deal in which a syndicate of three banks — the Industrial and Commercial Bank of China (ICBC), ING Group N.V., and Siemens Financial Services GmbH (SFS) — entered into a $115.00 million USD syndicated loan agreement with John Laing Infrastructure Fund Limited (JLIF) to support its acquisition of a 100% stake in Project Service LLC. JLIF is a Guernsey-incorporated and registered infrastructure fund listed on the London Stock Exchange with John Laing Capital Management Limited (JLCM), a wholly-owned subsidiary of British infrastructure company John Laing Group plc as its investment adviser. The loan carried a maturity period of seven years and a final maturity date of June 30, 2023 and was divided into two tranches: a $110.00 million USD term loan tranche and a $5.00 million USD letter of credit tranche. ICBC contributed $38.26 million USD, ING Group contributed $52.60 million USD, and SFS contributed $19.14 million USD to the $110 million USD term loan tranche. ICBC contributed $1.74 million USD, ING Group contributed $2.40 million USD, and SFS contributed $0.86 million USD to the $5 million USD letter of credit tranche; AidData does not consider letters of credit to be flows. The proceeds were to be used by the borrower to finance its 100% acquisition of Project Service LLC from Carlyle Infrastructure Service Plazas, L.P. (an affiliated of the Carlyle Group Inc., Doctor's Associates Inc. (the parent company of Subway Restaurants) and Subcon, Inc. (a major Subway franchisee and developer). Project Service held a 35-year P3 exclusive concession to redevelop and renovate, operate, and maintain 23 motorway / highway service plazas (on-highway fuel and food facilities), known as Connecticut Service Plazas, along Interstate 95, Interstate 395 and Route 15 in the state of Connecticut under a 2009 public-private-partnership (PPP) awarded by the Connecticut Department of Transport, with the State of Connecticut benefiting from a revenue sharing agreement. This was JLIF's first entry into the American P3 market. The agreement to acquire Project Service was made on May 18, 2016, valuing the company at an equity value of $105 million USD (£72 million GBP). The acquisition was completed on June 30, 2016.

Staff comments

1. It is possible, if not likely, the specific borrower was a special purpose vehicle of John Laing Infrastructure Fund Limited. This issue merits further investigation.