TORONTO, July 24, 2015 /CNW/ - Aecon Group Inc. (TSX: ARE) announced today that Crosslinx Transit Solutions ("Crosslinx") has reached commercial and financial close on the previously disclosed Eglinton Crosstown Light Rail Transit (LRT) project in Toronto. In 2010, the Province of Ontario announced an investment of $5.3 billion for capital (construction costs) for the Crosstown LRT.
Crosslinx is comprised of: Aecon, ACS Infrastructure Canada, EllisDon, and SNC-Lavalin and was previously selected by Metrolinx and Infrastructure Ontario as the preferred proponent for the project. Each member of the Crosslinx consortium, including related construction and maintenance affiliates, is an equal partner with a 25 per cent interest in the equity, development, construction and maintenance activities of the project.
Financing for the project is provided by National Bank Financial Inc. and Scotia Capital Inc. as Underwriters; Alberta Treasury Branches, Caisse Centrale Desjardins, The Bank of Nova Scotia, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Toronto-Dominion Bank as Mandate Lead Arrangers; and The Bank of Nova Scotia and National Bank Financial Inc. have acted as Co-Financial Advisors for the project.
Crosslinx is responsible for the design, build, finance, maintenance and lifecycle activities of the 19 kilometre Eglinton Crosstown LRT line for a 30-year maintenance term, including 25 stations, an integrated system of track work, rolling stock, signaling and communications infrastructure.
"Together with our partners, Aecon is pleased to advance to the execution stage of the Eglinton Crosstown LRT project and looks forward to delivering a world-class LRT service for the City of Toronto," said Teri McKibbon, President and Chief Executive Officer, Aecon Group Inc. "Our participation in this large-scale project, both during construction and maintenance stages, bodes well for Aecon's growth, as it positions itself to participate in the unprecedented transit build-out planned by various jurisdictions across Canada."
Aecon Group Inc. is a Canadian leader in construction and infrastructure development providing integrated turnkey services to private and public sector clients. Aecon is pleased to be consistently recognized as one of the Best Employers in Canada.
The information in this press release includes certain forward-looking statements. These "forward-looking" statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. In addition to events beyond Aecon's control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to: the timing of projects, unanticipated costs and expenses, general market and industry conditions and operational and reputational risks, including Large Project Risk and Contractual Factors. Readers are referred to the specific risk factors relating to and affecting Aecon's business and operations as filed by Aecon pursuant to applicable securities laws. Forward-looking statements may include, without limitation, statements regarding the operations, business, performance, prospects, strategies and outlook for Aecon. Forward-looking statements, may in some cases be identified by words such as "will," "plans," "believes," "expects," "anticipates," "estimates," "projects," "intends," "should" or the negative of these terms, or similar expressions. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Aecon Group Inc.
For further information: David Smales, EVP and Chief Financial Officer, Aecon Group Inc., 416-297-2619, firstname.lastname@example.org, www.aecon.com