North America: DIF closes USD 220m American Roads buy

17 July 2018 - 12:00 am UTC

DIF Infrastructure V has closed its USD 220m acquisition of American Roads from monoline insurance provider Syncora, according to a Tuesday (17 July) statement.

ING and National Australia Bank provided financing for the investment, having previously been appointed to carry out a USD 150m private placement. The manager did not specify whether this was the funding mechanism for the acquisition.

Advising DIF on the deal were Allen & Overy (legal), Agentis Capital (financial), Buro Happold (traffic), BTY (technical) and Marsh (insurance). Syncora’s adviser was Evercore (financial).

A spokesperson for DIF declined comment.

American Roads is an infrastructure holding company that operates four toll bridges in Alabama and a concession-lease of the US side of the Detroit-Windsor Tunnel.

The four toll bridges in Alabama are:

-Emerald Mountain Expressway (Wetumpka)

-Montgomery Expressway (Millbrook)

-Tuscaloosa Bypass (Tuscaloosa)

-Beach Express (Orange Beach)

The concession for the Detroit-Windsor tunnel was extended by some 20 years as part of a settlement in the fall of 2014.

However, competition now is close at hand after the Windsor Detroit Bridge Authority (WDBA) selected the Bridging North America consortium to build the Gordie Howe International Bridge. At a press conference on Tuesday, the WDBA announced that construction had begun on the bridge, with the project expected to reach financial close at the end of September.

DIF