Updated to include:

• lenders
• advisers

A Plenary Americas-led consortium reached financial close on the C$9 billion ($6.7bn) Ontario Line Rolling Stock, Systems, Operations and Maintenance (RSSOM) package with C$160 million in equity.

The fixed-price contract for the package, which is part of the larger Ontario Line Project, is split into C$2.3 billion in capital costs and C$6.7 billion in financing, transaction and O&M costs.  

The lenders are involved in 2 tranches of debt – term loan and revolving credit facility (RCF) – with both having 8.5-year tenors.

The term loan was led by Japan Bank for International Cooperation (JBIC) with all the lenders on the RCF coming in as arrangers.

Lenders on the RCF are:

• ATB Financial
• DZ Bank
• National Bank of Canada
• SMBC
• KDB
• Norinchukin Bank

Infrastructure Ontario (IO) and Metrolinx selected the concessionaire Connect 6ix to DBFOM the asset with operations lasting for 30 years in September (2022). The team includes:

• Plenary Americas (equity)
• Hitachi Rail (equity)
• Webuild (equity)
• Transdev Canada (equity)
• IBI Group Professional Services
• Astaldi Canada Design & Construction
• NGE Contracting
• National Bank Financial (financial adviser)
• SMBC (financial adviser)

Construction is expected to start next year (2023) with contract completion anticipated in 2031.

The Ontario Line is a 15.6km stand-alone rapid transit line that will connect the Ontario Science Centre to Exhibition/Ontario Place. It is being delivered as 3 separate P3 contracts: RSSOM, South and North packages.

The scope of work for RSSOM contract includes:

• rolling stock
• all track and systems
• the maintenance and storage facility, the operations and backup operations control centre

Connect 6ix will begin the O&M of the Ontario Line once all the civil infrastructure elements and systems from Ontario Line North and South segments have been completed.

The South segment reached financial close last week (10 November) while the RFQ for the North contract is expected to be issued this year.

In addition to the 3 main contracts, there will also be a series of early works projects for bridge, track and other preparatory activities along the Ontario Line alignment, including the joint rail corridor, where the Ontario Line will operate next to existing GO Transit rail services.

IO declined to provide comment.

It was advised by:

• EY – financial and transaction
• Fasken Martineau DuMoulin – legal
• HDR – technical
• Optimus SBR – fairness monitor