We are FCC - Nº6

secured private placement notes (fixed and floating) – with maturity of 20 years – and £62.3 million pari passu unrated senior secured bank term loan that is also payable in 20 years. The Project obtained invest- ment grade rating from a leading ra- ting agency and the rating outlook is stable. Actual costs were set at UK Gilt + 250 bps. The transaction achieved the first investment grade rating assigned to a portfolio of EfW plants in the U.K., therefore making it a pioneering deal from a rating perspective in the EfW sector. The two EfW plants supporting the financing give a general portfolio diversification effect thanks to (i) di- fferent combustion technologies, (ii) distinct regional market dynamics, and (iii) a total of 5 incineration lines. The plants benefit from historically strong ties with credit worthy local authorities to which they provide waste disposal and other infrastruc- ture services under long-term con- tracts. Ongoing high landfill taxes and ex- port costs, combined with barriers to entry and projected treatment capacity gaps in the relevant catch- ment areas, increase the prospects of a successful renewal of the EfW waste supply contracts in 2030. By Therefore making it a pioneering deal from a rating perspective in the EfW sector The transaction achieved the first investment grade rating assigned to a portfolio of EfW plants in the U.K. FCC is a leading global environmen- tal services, water and construction business, and has nearly 30 years of experience in the UK of contracting with local authorities and businesses for the management, disposal and treatment of millions of tonnes of hou- sehold, and commercial and industrial waste with track record in developing, constructing and operating assets and managing various stakeholder relationships (notably UK councils). About FCC UK that stage, FCC will also have signi- ficantly de-levered from scheduled amortization payments and will be more capable of withstanding adver- se market conditions, should CACIB acted as sole Financial and Rating Advisor to FCC. Inter alia, the rating agency noted the borrower’s strong credit underlined by the revenue and cash flow stability from long-term, fixed price contracts with creditwor- thy counterparties at two operating waste-to-energy facilities in the U.K. Eastcroft EfW plant in Nottingham (United Kingdom) F C C G R O U P 11 F C C G R O U P