Ports America in Refinancing and Consolidation of Capital Structure

January 27, 2014

Cleary Gottlieb represented Ports America, a portfolio company of Highstar Capital, in the refinancing of the credit facilities of both Ports America, Inc. and MTC Holdings, Inc. into a single, unified capital structure.

The refinancing consisted of a new 5-year $475 million senior secured credit facility, including $170 million of revolving credit and letter of credit facilities, and a new 7-year $375 million Holdco financing. The senior secured facility was led by Royal Bank of Canada, and the Holdco facility was provided by CPPIB Credit Investments III, a wholly-owned subsidiary of Canada Pension Plan Investment Board. In connection with the refinancing, CPPIB also acquired a 10% equity interest in the Holdco. The transaction closed on January 27, 2014.

Ports America, headquartered in New Jersey, is the largest independent marine terminal operator in the United States. The company currently operates in more than 42 ports and 80 locations, handling all types of cargo, including container, bulk, breakbulk, automotive, project, military and cruise.

Highstar Capital is an independently owned and operated private equity firm with an operationally focused, value-added strategy. Based in New York, the firm was founded in 1998. Since 2000, the Highstar Team has managed approximately $7.6 billion on behalf of its managed funds and co-investors, including investments in energy infrastructure, environmental services infrastructure, infrastructure, and transportation infrastructure. Highstar has been a leader in public-private partnerships (PPPs), having successfully consummated landmark PPPs in both the aviation and port sectors.