Hogan Lovells Advises on £600m NET2 PFI Project
20 December 2011
LONDON, 20 December 2011 - Hogan Lovells has advised on the successful financial close of the £600m Nottingham Express Transit (NET) Phase 2 PFI Project, announced on Thursday 15 December.
Hogan Lovells acted as legal adviser to a bank group providing senior debt funding for the Project - The Royal Bank of Scotland plc (RBS), Banco Bilbao Vizcaya Argentaria, S.A (BBVA), Crédit Agricole CIB, The Bank of Tokyo-Mitsubishi UFJ, Ltd (BTMU) and The European Investment Bank.
The 22-year design-build-finance-operate PFI project entails two extensions to the existing tram system in the city. The first is a 10km line towards Chilwell via the ng2 development site, Queen's Medical Centre, the University of Nottingham, the Science Park and Beeston. The second is a 7.5km line towards Clifton via Wilford and will serve residential areas including the Meadows and the Clifton Estate. The project also involves taking over the operation of the existing NET Phase 1 from Arrow Connect. The senior debt financing comprises 18 year commercial bank and EIB term loan facilities, a commercial bank sourced short term capital contribution bridge facility and interest rate swaps.
The Hogan Lovells team advising the senior banks was led by London infrastructure finance partner Andrew Gallagher alongside infrastructure finance partner Andrew Briggs, who were assisted by senior associate Charles Ford, Of Counsel Emma Clarke and associate Nathan Buckley.
Commenting on the transaction, Andrew said:
"We are pleased to have successfully advised the senior banks in closing this long-term investment that will significantly improve the infrastructure system in Nottingham. This complex project, involving a substantial demand risk element and a large number of contractor parties, is one of the most complex UK projects to reach close in 2011. We are delighted to have worked with such a strong bank group and consortium on this market leading development ".
Nottingham City Council selected the Tramlink Nottingham consortium, comprising Vinci, Alstom, Keolis, Trent Barton, Meridiam and OFI Infravia, as preferred bidder for the project in March 2011.
CMS Cameron McKenna acted as legal adviser to the Tramlink consortium and DLA advised Nottingham City Council.