#Canada #Toronto #Private Placement #Connor Clark Lunn #Alpenglow Rail

Successful Partnership on Rail Infrastructure Financing

Connor, Clark & Lunn Infrastructure (CCL Infrastructure) along with Alpenglow Rail has recently finalized a significant private placement financing, securing more than CAD 280 million. This achievement showcases a robust interest from an array of notable North American financial institutions, which led to the transaction being oversubscribed.

The financial instruments issued received an investment-grade rating, further reflecting investor confidence in the rail sector. Established in 2019, the collaboration between CCL Infrastructure and Alpenglow Rail focuses on developing and managing a diverse portfolio of rail businesses across North America, providing essential services to an expanding client base.

About Alpenglow Rail's Portfolio

Alpenglow Rail oversees six strategically positioned rail terminals—three in Canada, branded as VIP Rail in Ontario and Alberta Midland, and three in the USA under the USA Rail brand. Their operations extend to railcar storage, switching, transloading, and cleaning among others, cementing their reputation as a comprehensive service provider in the rail logistics sector.

Ryan Lapointe, Managing Director of CCL Infrastructure, expressed his enthusiasm about the financing, stating it underscores the strength of their partnership and the quality of their rail platform. He emphasized that the strategic financing aligns with their vision of expanding a safe and scalable rail business, positioning them for future growth.

In the same vein, Henning von Kalm, Chief Financial Officer of Alpenglow Rail, remarked on the resilience of their business model and the strategic locations of their terminals within key North American refining and petrochemical markets. This financing not only reinforces their operational capabilities but also signals strong investor confidence.

Strategic Implications and Future Outlook

The rail terminals are instrumentally situated in prominent industrial regions, enhancing Alpenglow Rail’s operational efficiency and market reach. The funding obtained from this private placement is expected to bolster their existing infrastructure, enabling further advancements in technology and service delivery within the industry.

The transaction also highlights the ongoing evolution in the rail sector, where innovative financial strategies are crucial for expansion and competitiveness. CIBC Capital Markets served as the exclusive financial advisor, facilitating this transaction alongside National Bank of Canada and Desjardins Capital Markets as placement agents, further showcasing the collaborative nature of this financing effort.

CCL Infrastructure has consistently aimed at investments that yield stable long-term value, and this recent financing is a strategic extension of this ethos. With over CAD 7 billion in assets across diverse sectors and geographical areas, they are well-positioned to leverage this funding for sustained growth.

This partnership not only facilitates immediate financial growth but also sets a foundation for long-term success in the rail transportation industry. The enthusiasm and strategic focus from CCL Infrastructure and Alpenglow Rail mark a significant movement towards enhancing the resilience and capabilities of rail transport in North America, promising a robust future ahead for stakeholders involved.

Conclusion

As the rail industry braces for transformative changes, partnerships akin to CCL Infrastructure and Alpenglow Rail will likely play a crucial role in shaping efficient, customer-centric rail services. Investors and stakeholders will be watching closely as this alliance implements its growth strategies to capitalize on emerging opportunities in the sector.