Indiana Toll Road acquired by global investment firm
Posted: Mar 11, 2015 2:03 PM EST | Updated: Jul 10, 2015 8:45 PM EST
The Indiana Toll Road has been acquired by IFM Global Infrastructure Fund. The firm has entered into a "definitive purchase" and sale agreement to buy ITR Concession Company LLC, the company that currently operates and maintains the Indiana Toll Road. Prior to the purchase, ITRCC voluntarily filed for Chapter 11 bankruptcy.
IFM Investors will pay $5.725 billion for ITRCC. Under a concession agreement, ITRCC will still collect revenues from the toll road for at least 66 years.
According to a press release, the firm acquired the company through a competitive bidding process.
The following is a press release from IFM Investors, released on Business Wire:
"NEW YORK--(BUSINESS WIRE)--IFM Investors, on behalf of IFM Global Infrastructure Fund, has entered into a definitive purchase and sale agreement to acquire ITR Concession Company LLC (“ITRCC”). ITRCC is party to a Concession and Lease Agreement between ITRCC and the Indiana Finance Authority (“IFA”), pursuant to which ITRCC operates and maintains the Indiana Toll Road, a 157-mile, limited access, divided highway in the state of Indiana. The road spans northern Indiana, from its border with Ohio to the Illinois state line near Chicago, feeding directly into two toll roads at the state lines – the Chicago Skyway in the west and the Ohio Turnpike in the east. The Concession Agreement requires ITRCC to operate and maintain the road and grants ITRCC the exclusive right to collect toll revenues from the toll road during the term of the Concession Agreement, which has a remaining life of 66 years.
IFM Investors has agreed to pay $5.725 billion for ITRCC. The closing of the transaction is subject to obtaining necessary third-party and government authorizations and approvals, including the approval of the IFA.
ITRCC is party to a voluntary bankruptcy proceeding under Chapter 11 of the Bankruptcy Code. Pursuant to a prepackaged plan of reorganization of ITRCC confirmed by order of the Bankruptcy Court, the Special Committee of the Board of Directors of ITRCC was granted the authority to run a competitive bidding process for the sale of ITRCC and to approve a sale of ITRCC. Pursuant to such authority, the Special Committee has approved the sale of ITRCC to IFM Investors under the terms of the purchase and sale agreement.
IFM Investors is a global pioneer and leader in infrastructure investing, infrastructure asset management and operations and maintenance. IFM Investors regards ITRCC as an attractive investment for its infrastructure portfolio. Julio Garcia, Head of Infrastructure – North America at IFM Investors said: “We believe this is a unique opportunity to invest in a high quality United States transportation infrastructure asset. IFM Investors views the Indiana Toll Road as an essential operating asset for its strategic geographical position, long concession duration and inflation and GDP-linked tolling regime. ITR is strategically important to the North American transportation network. We are committed to maintaining the asset to a high standard that provides maximum availability and usability for customers.”
About IFM Investors
IFM Investors is a uniquely-structured global fund manager with US$43 billion under management as of December 2014. Established over 20 years ago and owned by 30 Australian non-profit pension funds, IFM Investors' interests are deeply aligned with those of its investors, the largest number of which are US pension funds (including three of the six largest public sector pension funds). Investment teams in Australia, North America and Europe manage institutional strategies across debt investments, infrastructure, listed equities and private capital. IFM Investors is committed to the United Nations supported Principles for Responsible Investment and has been a signatory since 2008. IFM Investors has offices in six locations: Melbourne, Sydney, New York, London, Berlin and Tokyo. For more information visit www.ifminvestors.com.
About Indiana Toll Road
ITR is a 157-mile, limited access, divided highway in the state of Indiana. The road spans northern Indiana, from its border with Ohio to the Illinois state line near Chicago, feeding directly into two toll roads at the state lines – the Chicago Skyway in the west and the Ohio Turnpike in the east. For its westernmost 24 miles adjacent to the Illinois border, it runs through the urban region surrounding Gary, Indiana. The remainder of the road is inter-urban, providing a principal link between Chicago and the east coast."
IFM Investors will pay $5.725 billion for ITRCC. Under a concession agreement, ITRCC will still collect revenues from the toll road for at least 66 years.
According to a press release, the firm acquired the company through a competitive bidding process.
The following is a press release from IFM Investors, released on Business Wire:
"NEW YORK--(BUSINESS WIRE)--IFM Investors, on behalf of IFM Global Infrastructure Fund, has entered into a definitive purchase and sale agreement to acquire ITR Concession Company LLC (“ITRCC”). ITRCC is party to a Concession and Lease Agreement between ITRCC and the Indiana Finance Authority (“IFA”), pursuant to which ITRCC operates and maintains the Indiana Toll Road, a 157-mile, limited access, divided highway in the state of Indiana. The road spans northern Indiana, from its border with Ohio to the Illinois state line near Chicago, feeding directly into two toll roads at the state lines – the Chicago Skyway in the west and the Ohio Turnpike in the east. The Concession Agreement requires ITRCC to operate and maintain the road and grants ITRCC the exclusive right to collect toll revenues from the toll road during the term of the Concession Agreement, which has a remaining life of 66 years.
IFM Investors has agreed to pay $5.725 billion for ITRCC. The closing of the transaction is subject to obtaining necessary third-party and government authorizations and approvals, including the approval of the IFA.
ITRCC is party to a voluntary bankruptcy proceeding under Chapter 11 of the Bankruptcy Code. Pursuant to a prepackaged plan of reorganization of ITRCC confirmed by order of the Bankruptcy Court, the Special Committee of the Board of Directors of ITRCC was granted the authority to run a competitive bidding process for the sale of ITRCC and to approve a sale of ITRCC. Pursuant to such authority, the Special Committee has approved the sale of ITRCC to IFM Investors under the terms of the purchase and sale agreement.
IFM Investors is a global pioneer and leader in infrastructure investing, infrastructure asset management and operations and maintenance. IFM Investors regards ITRCC as an attractive investment for its infrastructure portfolio. Julio Garcia, Head of Infrastructure – North America at IFM Investors said: “We believe this is a unique opportunity to invest in a high quality United States transportation infrastructure asset. IFM Investors views the Indiana Toll Road as an essential operating asset for its strategic geographical position, long concession duration and inflation and GDP-linked tolling regime. ITR is strategically important to the North American transportation network. We are committed to maintaining the asset to a high standard that provides maximum availability and usability for customers.”
About IFM Investors
IFM Investors is a uniquely-structured global fund manager with US$43 billion under management as of December 2014. Established over 20 years ago and owned by 30 Australian non-profit pension funds, IFM Investors' interests are deeply aligned with those of its investors, the largest number of which are US pension funds (including three of the six largest public sector pension funds). Investment teams in Australia, North America and Europe manage institutional strategies across debt investments, infrastructure, listed equities and private capital. IFM Investors is committed to the United Nations supported Principles for Responsible Investment and has been a signatory since 2008. IFM Investors has offices in six locations: Melbourne, Sydney, New York, London, Berlin and Tokyo. For more information visit www.ifminvestors.com.
About Indiana Toll Road
ITR is a 157-mile, limited access, divided highway in the state of Indiana. The road spans northern Indiana, from its border with Ohio to the Illinois state line near Chicago, feeding directly into two toll roads at the state lines – the Chicago Skyway in the west and the Ohio Turnpike in the east. For its westernmost 24 miles adjacent to the Illinois border, it runs through the urban region surrounding Gary, Indiana. The remainder of the road is inter-urban, providing a principal link between Chicago and the east coast."
