McInnis Cement closes a refinancing
Published by Lucy Stewardson,
Editorial Assistant
World Cement,
Building on achievements in growing customer demand in the last two years, McInnis Cement has confirmed the closing of a CAN$500 million private refinancing of private capital. This refinancing will allow the company to support its rapid growth, better serve its customers, and align its capital structure with reduced operational and financial risk resulting from its good performance, which will lead to significant savings. Of this amount, CAN$300 million is provided by an increase in McInnis Cement’s senior loan from a syndicate of eleven Canadian and international banks, and a CAN$200 million injection in the form of a loan by the Caisse de dépôt et placement du Québec and Beaudier Inc. This refinancing also makes it possible to repay the bridge loan granted by BlackRock in 2016.
Investissment Québec has made certain adjustments to its debt structure while maintaining a priority ranking in the capital structure of a project whose operational and financial risk has significantly decreased. As part of this refinancing, the Québec government does not reinvest any additional amount.
Over the past few months, McInnis Cement has planned and undertaken significant work in several of its facilities to add storage and loading capacity. This work has been made necessary by an increased customer demand for its products.
The Bronx Terminal has doubled its loading capacity for customers and a second truck loading lane is now fully operational. A new 40 000 metric t warehouse is currently under construction at the Providence Terminal, bringing the total storage capacity to 75 000 metric t. A new truck loading land will also be added and commissioned in time for the 2020 Spring construction season.
In addition, two new cement silos will be built at the Port-Daniel-Gascons cement plant. Nearly 200 workers will be mobilised on the site during the peak construction period of the two silos, during Autumn 2019. Finally, With NOVA Marine Carriers, McInnis recently confirmed the charter of the NACC New Yorker, a 24 000 metric t capacity self-unloading vessel, which will join the NACC Quebec (14 000 metric t), the Cielo di Gaspesie (35 000 metric t) and the Resolute unloading barge.
In addition to improving cement distribution capacity for McInnis customers, the refinancing is expected to pave the way to new markets.
McInnis anticipates the upcoming development of satellite terminals in the northeastern US, as well as adding more infrastructure to its distribution network, distributing cement additives in different markets.
The plant’s engineering team began planning a future rail yard to be timed in conjunction with the reopening of the railway to Port-Daniel-Gascons. Direct loading of the cars at the cement plant will make it possible to prospect new territories and the plant will eliminate 160 000 tpy of cement from the roads (approximately 8000 truck trips).
“In seeing our customers’ satisfaction with our product offering, we fully appreciate the work done by our teams,” said Jean Moreau, President and CEO of McInnis Cement. “This refinancing allows us to further support the growth of our business. These investments will better position McInnis Cement to meet the increased demand for our customers. With our partners and investors’ support, we now have all the tools to continue our momentum.”
Read the article online at: https://www.worldcement.com/the-americas/19072019/mcinnis-cement-closes-a-refinancing/
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