Infra Americas • December 3, 2012

Rialto Water System P3

Veolia Water West Operating Services and Table Rock Capital have reached financial close on a 30-year concession to operate the water and wastewater systems of Rialto, Calif., a city with 110,000 residents located 60 miles east of Los Angeles.

The debt-to-equity ratio on the USD172m deal is 85:15, with USD146m of bonds issued in the 4(2) private placement market and an equity contribution of USD25.8m. The bonds have received an investment grade rating from Fitch Ratings.

The 30-year amortizing bonds priced with a coupon of 5.5%.

The major equity providers are Table Rock and an affiliate of Ullico, a financial services company for union workers.

Capital Improvements

The consortium, called Rialto Water Services, will invest USD41m in capital improvements in the first five years of the concession, which is expected to create 445 construction jobs.

Barclays and Goldman Sachs served as underwriters on the deal. The deal has received all required regulatory approvals.

Law firm Fulbright & Jaworski advised Rialto on the transaction.