CC&L Infrastructure and Alpenglow Rail's Successful Financing Deal
Connor, Clark & Lunn Infrastructure (CC&L Infrastructure) and Alpenglow Rail have successfully closed an inaugural private placement financing, raising over CAD 280 million. The initiative garnered substantial interest from a wide array of prominent North American financial institutions, leading to a situation where the offering was significantly oversubscribed, with the private placement notes achieving an investment grade rating.
The Partnership's Vision
Building Strong Rail Ventures
In 2019, CC&L Infrastructure teamed up with Alpenglow Rail to develop and manage a diversified portfolio of rail businesses across North America. Alpenglow maintains a robust portfolio consisting of six rail terminals—three in Canada under the VIP Rail brand, located in Sarnia and Corunna in Ontario, and Alberta Midland in Alberta, alongside three in the U.S. under the USA Rail brand in Port Allen, Louisiana, and Port Arthur and Orange in Texas. Their offerings include comprehensive rail solutions such as railcar storage, switching, transloading, and cleaning services.
Commentary from Leadership
Ryan Lapointe, Managing Director at CC&L Infrastructure, expressed satisfaction with the successful financing, stating it highlights the strength of their collaboration with Alpenglow. He remarked on their initial goals of establishing a safe and customer-centric rail business, affirming that this financial success positions them well for future growth. With a long-term investment perspective, they are keen on continuing their impactful journey within the rail sector.
Likewise, Henning von Kalm, Chief Financial Officer of Alpenglow, emphasized their commitment to high-quality rail asset ownership and operation. He noted that the private placement reflects the resilience of their business model and investor trust in their platform. Alpenglow's terminals are strategically situated within vital refining and petrochemical hubs across North America, including the Alberta Heartland and the US Gulf Coast, making them ideal for future successes.
Partnership with Financial Advisors
CIBC Capital Markets played an essential role as the exclusive financial advisor and lead placement agent for both CC&L Infrastructure and Alpenglow. National Bank of Canada Capital Markets and Desjardins Capital Markets also contributed as additional placement agents, while Torys LLP provided legal counsel for the issuance.
About Connor, Clark & Lunn Infrastructure
CC&L Infrastructure specializes in investing in middle-market infrastructure assets characterized by appealing risk-return profiles, longevity, and the potential for generating stable cash flows. To this date, they have amassed over CAD 7 billion in assets under management, spread across various sectors and geographical areas, involving more than 100 facilities and approximately 40 individual investments. CC&L Infrastructure operates as part of Connor, Clark & Lunn Financial Group Ltd., an independently operated asset management firm that caters to both institutional and individual investors, with its affiliates managing assets exceeding CAD 167 billion.
About Alpenglow Rail
Alpenglow Rail focuses on developing and managing freight rail businesses and transportation-related assets throughout North America. The company's rail terminals are strategically placed in prominent industrial regions across Canada and the Gulf Coast. Founded by seasoned professionals in the railroad industry, Alpenglow's leadership team brings substantial experience in acquiring, operating, and expanding short line railroads in North America.
Frequently Asked Questions
What was the amount raised in the private placement financing?
The financing raised over CAD 280 million.
Who were the financial advisors for this deal?
CIBC Capital Markets acted as the exclusive financial advisor, with support from National Bank of Canada Capital Markets and Desjardins Capital Markets.
What services does Alpenglow Rail offer?
Alpenglow Rail provides a range of rail solutions including railcar storage, switching, transloading, and railcar cleaning.
When was CC&L Infrastructure and Alpenglow's partnership established?
The partnership was established in 2019.
What industries does CC&L Infrastructure focus on for investments?
CC&L Infrastructure invests in middle-market infrastructure assets across various sectors and geographies.
