King & Wood Mallesons has advised the Transurban Group on its acquisition (subject to regulatory approval and final asset inspection) of all of the senior secured debt exposure of Sydney’s Cross City Tunnel (CCT).
Under this transaction, Transurban will buy all of CCT’s senior secured debt from the Royal Bank of Scotland (RBS) for $475m (£300m) and has agreed to pay RBS an additional $27.5m over four years if traffic flows outperform Transurban’s base case assumptions.
The debt acquisition is anticipated to close in December 2013.
The CCT is currently in receivership and the receivers will continue with that sale process — Transurban intends to participate in that process.
The King & Wood Mallesons team was led by banking partners Peter Doyle and Claire Rogers, with insolvency partner Tony Troiani providing strategic restructuring advice.