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FSA Guarantees Millau Viaduct Loans
London, July 25, 2007 - Aaa/AAA/AAA financial guarantor Financial Security Assurance (FSA) has guaranteed €286.5 million of amortizing, index-linked bank debt to refinance the Millau Viaduct in southern France, representing half of a €573 million monoline-insured refinancing guaranteed by FSA and MBIA. The FSA-guaranteed portion consists of a 44-year, €215 million loan facility provided by Dexia Credit Local and Depfa and a 30-year, €71.5 million loan from the European Investment Bank. The transaction provides refinancing and releveraging of the 75-year concession to operate and maintain the toll bridge, which was granted in 2001 by the French government to an affiliate of the Eiffage group. FSA guarantees timely payment of scheduled principal and interest to the lenders.
"Eiffage evaluated a variety of executions in both the capital market and the banking sector before choosing monoline-wrapped loans as the most efficient way to refinance this project over the long term," said Philippe Benaroya, a director in FSA's Paris office. "While monoline wraps are widely associated with bond issues, they are also being used more frequently to guarantee bank loans. In this case, they allowed for very long maturities at a competitive all-in cost. "
Opened in 2004, the Millau Viaduct allowed the A75 motorway to cross the valley of the River Tarn, relieving significant congestion in the town of Millau. It is the tallest vehicular bridge in the world.
About FSA
Financial Security Assurance Holdings Ltd. (the Company), headquartered in New York City, is a holding company whose affiliates provide financial guarantees and financial products to clients in both the public and private sectors around the world. The principal operating subsidiary, Financial Security Assurance Inc., is a leading guarantor of public finance and asset-backed obligations. Financial Security Assurance (U.K.) Limited is a U.K.-licensed subsidiary of Financial Security Assurance Inc. Guarantees issued by these subsidiaries carry Triple-A ratings, the highest ratings available, from Fitch Ratings, Moody's Investors Service, Inc., Standard & Poor's Ratings Services and Rating and Investment Information, Inc. The Company is a member of the Dexia group.