Reliance Rail, a public-private partnership (PPP) formed with the NSW State Government, has built and owns the Waratah Trains on Sydney’s rail network, and is one of Australia’s largest PPP projects with a value of A$3.6 billion. 

Reliance Rail, together with support from its existing shareholders (Amber Infrastructure, AMP Capital and Downer), sought approval from the State to refinance its A$2 billion debt earlier this year.

The existing debt was successfully refinanced with new bank debt, bonds and a capital injection from Amber Infrastructure Group and AMP Capital Investors Limited, who will buy out the State of NSW.

The Transaction involves a reduction in outstanding debt, restructuring existing CPI swaps and additional CPI swaps and interest rate swaps.

John Schembri, head of G+T’s Banking + Infrastructure team, who led the transaction, said “We are delighted at this outcome for Reliance Rail after months of negotiations and hard work from all sides on a very complex refinance. I am also very proud of the team at G+T who worked tirelessly to get this transaction over the line”.

As well as helping the company secure its current refinancing, Gilbert + Tobin provides ongoing advice to Reliance Rail.

John Schembri’s debt team comprised of fellow partner Adela Smith, special counsel Caroline Mathie, debt capital markets specialist Louise McCoach and lawyers Abigail Cowled, Lisa Hamilton and Billy Quist.  G+T’s Banking + Infrastructure team is recognised as market leading by major legal directories, including a top-tier ranking in Chambers Asia Pacific.

Gilbert + Tobin’s recapitalisation team was headed by Hiroshi Narushima, assisted by Melissa Baxter and Laura Bacon.

Gilbert + Tobin’s Litigation team was also heavily involved in the transaction, with Court action required during the process. The Litigation team was headed by Crispian Lynch, assisted by Amy Campbell and Carla Corben.