- Alpha Group News
- 16. December 2016
- Alpha Trains Press Releases | Alpha Trains
Press release
Alpha Trains Group completes € 605m refinancing partly sourced from the US PP market for the first time
Alpha Trains Group, Europe’s largest private lessor of rolling stock, has successfully completed the integration of 63 of its passenger trainsets into its ring-fenced senior secured financing platform along with the refinancing of other existing bank facilities and an addition of a further Capex facility. The trainsets are energy efficient Electric Multiple Units, manufactured by Stadler and Bombardier and have been operating since the end of 2015 on two concessions. The trainsets are leased under long-term leases (remaining lease term of 14 years each) by Alpha Trains to two different operators.
To finance the acquisition and refinance some of the existing facilities within the ring-fenced financing platform, Alpha Trains Finance S.A. as Issuer raised € 250m of senior secured green floating rate notes in the US private placement market (with maturities in 2028 and 2036) and € 305m of bank loans with tenors of 5, 7 and 10 years. In addition, Alpha Trains Finance S.A. increased the flexibility of the financing platform by adding a further € 50m Capex facility with a 5 year tenor.
Moody´s and Fitch reaffirmed the current Baa2 and BBB ratings of the bonds and institutional term loans before closing. “Our Investment Grade ring-fenced financing platform, launched in March of 2015, has again proved itself to be ideal in further financing our growth, increasing loan maturities and obtaining very competitive financing rates. This is the second use of the platform this year to finance acquisitions and further diversifies our available sources of debt funding with the introduction of the US PP debt to sit alongside the previous European PP debt, public bonds and bank debt in the platform”, said Shaun Mills, CEO of Alpha Trains Group.
The transaction was arranged by Crédit Agricole Corporate & Investment Bank and UBS Investment Bank in the role of financial advisors and PP joint placement agents and ING as PP joint placement agent.